The following account balances relating to real properties of Sherlock Company appear on the books on December 31, 2014:

Land 1	6,000,000
Land 2	10,000,000
Land 3	14,000,000

On January 1, 2015, Sherlock Company revalued its land to fair value. Sherlock does not have any other assets carried at the revalued amount on this date. The fair value on this date of Land 1, 2, and 3 are as follows:

Land 1	Land 2	Land 3
7,000,000	12,000,000	18,000,000

Buildings and other facilities located on all three properties are depreciated under the straight-line method of depreciation using a ten-year useful life. At current year-end, Land 2 was sold for 7,500,000.

Questions:

1) What is the initial revaluation surplus? 2) What is the amount revaluation surplus transferred to retained earnings for the year ended December 31, 2015?

3) What is the revaluation surplus at the current year-end? 4) What is the gain on the sale of land to be recognized at the current year-end?

* It would be helpful if it follows a brief explanation. Thank you!