1.[單選題]On 1 September 20X0，W Co purchased a property for $300,000.The property had a useful life of 50 years and was depreciated on a straight-line basis. On 1 September 20X5, the property was revalued to $450,000. The remaining useful life at the date was 45 years. The company wishes to make the allowed transfer of excess depreciation between the revaluation surplus and retained earnings.
Which of the following correctly records the transfer at 31 August 20X6?
A. Retained earnings $4,000 Revaluation surplus $4,000
B. Revaluation surplus $4,000 Retained earnings $4,000
C. Retained earnings $10,000 Revaluation surplus $10,000
D. Revaluation surplus $10,000 Retained earnings $10,000
2.[單選題]Z purchased some plant on 1 January 20X0 for $40,000. The payment for the plant was correctly entered in the cash book but was entered on the debit side of the plant repairs account. Y charges depreciation on the straight line basis at 20% per year, with a proportionate charge in the years of acquisition and disposal, and assuming no scrap value at the end of the life of the asset.
How will Y's profit for the year ended 31 March 20X0 be affected by the error?
A. Understated by $30,400
B. Understated by $36,100
C. Understated by $38,000
D. Overstated by $1,900