Happy owns a building, which was purchased at a cost of $1,000,000 on 30 June 2018 (8 years useful life and no residual value). Happy is carrying the building at fair value. On 30 June 2019 (for the first time after purchase), the building is assessed as having a fair value equal to $1,200,000 and is revalued by Happy.

a) Provide the journal entries to account for the revaluation on 30 June 2019, showing all necessary workings and calculations .

b) Under Accounting Standards an initial revaluation upwards is treated differently to a revaluation decrement in terms of its impact on the income statement. Describe the inconsistence in treatment and possible rational for such an inconsistency.