Hathoria company acquired a building on January 1, year 1 at a cost of 20,000,000. The building has an estimated useful life of 6 years and residual value of 2,000,000.

The building was revalued on January 1, year 4 and the revaluation revealed replacement cost of 30,000,000, residual value of 4,000,000 and revised useful life of 8 years.

a. Prepare journal entry to record the revaluation.

b. Prepare journal entry to record annual depreciation for year 4.

c. Prepare journal entry to record the piecemeal realization of the revaluation surplus. 2

d. Prepare the solution to support your answer.