A machinery has a carrying amount of $30,000 being original cost of $60,000 less accumulated depreciation of $30,000. The asset is revalued downwards to $25,000.

What is the appropriate entry to write the asset down to its fair value?

Select one:

DR Loss on revaluation (P&L) $5,000

CR Machinery $5,000

DR Loss on revaluation (P&L) $5,000

CR Asset revaluation surplus $5,000

DR Loss on revaluation (OCI) $5,000

CR Machinery

DR Machinery $5,000

CR Loss on revaluation (P&L) $5,000