Question:

Starfruit Company recently adopted the Revaluation Model in order to account for a building after acquisition. The following facts are presented at the time of the first revaluation: Before Revaluation Building - Carrying Value 320,000 Building - Accumulated Depreciation 80,000 Building - Fair Value 280,000 If this is the first year that the Revaluation Model is being used by Starfruit Company, the amount to be debited or credited to net income to record the revaluation would be: a. SO b. $40,000 debit c. $40,000 credit d. $200,000 credit e. $200,000 debit