A footwear manufacturer acquired a machine on 1 July 2008 for £180,000 and depreciated it annually at 10% of cost. Being an item of a specialised nature the machine has no market. On 1 July 2011 it learns from the supplier of the machine that replacement of the same machine will cost £210,000. Is revaluation of the machine permitted in the absence of a market and, if so, what will be the gain on revaluation?

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a Cannot revalue b £30,000 c £21,000 d £336,000