In the first year of business, Newport Ltd purchased land for $5 million. In the second year, a reputable, independent property valuer's report shows that the value of the land is estimated at $6 million. At the beginning of the fourth year, Newport Ltd sold the land for $7 million and received cash in full. Newport Ltd uses the revaluation method. Which of the following would be included in the sale journal entry?

1. CR Gain on sale $1 million

2. CR Revaluation surplus $1 million

3. CR Land $7 million

4. DR Land $5 million