Egypt Corp. owns equipment that originally cost $100,000. At December 31, 2023, the equipments carrying value (after 2023 depreciation was recorded) is $60,000. It is determined that the fair value of the equipment at this date is $90,000. Although Egypts policy is to apply the revaluation model using the proportionate method, this is the first time the company has done it.

The adjusting entry to record the revaluation will include a

Question 10Select one:

a.

debit to Revaluation Surplus (OCI) of $10,000.

b.

credit to Equipment of $10,000.

c.

debit to Accumulated Depreciation of $20,000.

d.

credit to Revaluation Surplus (OCI) of $30,000