Aqua Berhad acquired a freehold building worth RM3,000,000 on 1 July 2018. On 30 June 2020,the company revalued the freehold building based on current market value. The freehold building is valued at RM3,600,000 on 30 June 2020.

Required:

(i)Compute the revaluation surplus as a result of the revaluation exercise.

(ii) Aqua Berhad's accountant reported the revaluation surplus as operating income in the company's income

statement for the year ended 30 June 2020. In your opinion, has the revaluation surplus been reported correctly in Aqua Berhad's financial statements? Why?