ABC Company purchased a machinery on January 1, 2018 for Php800,000 that has an estimated useful life of 8 years. On December 31 of 2019 and 2020, the fair value of the machinery amounted to Php550,000, and Php600,000, respectively. On October 1, 2021, the entity decided to sell the machinery in the early part of 2022. The entity uses revaluation model in accounting for its property, plant, and equipment.
The fair market value of the machinery and its estimated disposal are as follows:
		Fair value	Disposal cost
Ocotber 1, 2021		400,000	25,000
December 31, 2021		405,000	20,000
How much is the revaluation surplus after the reclassification?
17,500.00
72,000.00
90,000.00
150,000.00
None of these