On 1 July 2014 Nadal Ltd acquired land for $320,000. The fair value of the land at the end

of the NEXT TWO YEARS is shown below:

30 June 2015 $280,000

30 June 2016 $310,000

On 30 June 2015, Nadal Ltd decides to adopt the fair value model for land.

Which choice below shows the relevant entry to record the above transaction (IGNORE

TAX) on 30 June 2016?

a) $10,000 Credit to Income Statement

b) $30,000 Debit to Asset Revaluation Surplus

c) $30,000 Credit to Asset Revaluation Surplus

d) $30,000 Debit to Income Statement

e) $30,000 Credit to Income Statement