3. In March 20X4, R&R Ltd. traded in land (market value of $10,000) plus cash of $16,500 for another piece of land with a market value of $24,000. The old land was intended to be used for parking and the new land was intended to be used for a warehouse. In December 20X4,the newly traded land had a market value of $34,000. In December 20X5, the land had a market value of $26,000. R&R uses the revaluation model for this asset class. Assume the transaction has commercial substance.

How should R&R record, in part, the land revaluation in December 20X5?

a) Debit revaluation loss for $500

b) Debit revaluation loss for $8,000

c) Debit revaluation surplus for $8,000

d) Credit revaluation surplus for $2,000