Company ABC owns a building with a cost of $ 400,000, accumulated depreciation of $ 60,000, and a book value of $ 340,000. Assume that the market value of the building is $ 370,000 by year-end.

Assuming that the company uses IFRS, the journal entries related to the revaluation that ABC must prepare for December 31 will require

Multiple Choice

A debit (increase) to expense of $ 60,000

A debit (increase) to an expense of $ 30,000 A credit (increase) to revaluation surplus for $ 60,000 A credit (increase) to revaluation surplus for $ 30,000