Samson Company applies revaluation accounting to plant assets with a carrying value of P800,000, a useful life of 4 years, and no salvage value. Depreciation is calculated on the straight-line basis. At the end of year 1, independent appraisers determine that the asset has a fair value of P750,000. The journal entry to adjust the plant assets to fair value and record revaluation surplus in year one will include a;

Select one:

a. credit to Plant Assets for P150,000.

b. credit to Depreciation Expense for P150,000.

c. debit to Accumulated Depreciation for P50,000.

d. credit to Revaluation Surplus for P150,000.