1. French company purchased a building during Year 1 and elected the revaluation method as its accounting policy for this asset. Upon revaluation at the end of Year 1, the building's carrying amount was increased by $100,000. Upon revaluation at the end of Year 2, the carrying amount was reduced by $25,000.Under IFRS, which of the following best describes the appropriate accounting result of the revaluation process at the end of Year 2?

A.The reduction in the carrying amount in Year 2 should be recognized immediately as an expense.

B.The company may elect to transfer the remaining revaluation surplus of $75,000 directly to retained earnings.

C.The company should reduce the existing balance in the revaluation surplus accumulated in stockholder's equity to $75,000.

D.The company may elect to allocate a portion of the remaining revaluation surplus of $100,000 at the end of Year 2 to the income statement over the assets remaining useful life.