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You are correct with the 1/8 becoming a 1/4 however you do not gain feats skills for an increased CR, the money is different depending on what you mean. a level 3 paladin who gains the advanced template is still a level three and would not gain the WBL money. A CR 7 juvenile white dragon its worth about 7800 Gold (2600 X3 because he is a dragon) if he became advanced he is now a CR 8 and worth about 10,050 Gold (3350 X3) Remember that PCs are not meant to gain templates most of the time.

Thomas Long 175 |
I wasn't meaning PC's i was looking at a different conversation about a CR 10 Squirrel (so it actually would have needed the template 12 times, not 10) and i wondered if it got appropriate WBL for a 10 CR enemy or a CR 1/8 enemy.
Edit: and by that i mean the money the actual enemy gets to spend on itself. Could the squirrel buy a ring of evasion? What about the amulet that makes you immune to poisons?

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Creatures generally dont get money to buy things, although I often give things the treasure players might find if they are intelligent enough to use them. that super squirrel still only has a 2 intelligence and would not be able to buy one. I believe the way the RAW are is that creature has a pile of loot it cannot use because a demon or ghoul are not listed as having items on them (most of the time) so no the squirrel cannot have a ring of evasion unless someone bought it and equipped it on the rodent. but giving it that stuff increases the CR I believe. I may not be correct on this but that is what i think is the case.