1. Under IFRS, when the revaluation model is used, any Revaluation Surplus associated with property, plant and equipment that is sold should be:

		(a) closed to income as it appears on the income statement
		(b) closed directly to retained earnings
		(c) closed, companies have the option of closing revaluation surplus associated with an asset that is sold to income as it appears on the income statement or directly to retained earnings.
		(d) None of these is correct.

2. XYZ Company uses IFRS and the revaluation model for its equipment. The company uses straight line depreciation and is revaluing the equipment below. Purchased the equipment on January 2, 2019 for $100,000. Estimated useful life of the equipment is 10 years. The equipment's estimated residual value is zero. Revalued the equipment on December 31, 2020 to $70,000. The revaluation journal entry for December 31, 2020 would include which of the following:

		(A) A debit to Loss on Revaluation of $30,000
		(B) A debit to Loss on Revaluation of $3,000
		(C) A debit to Loss on Revaluation of $10,000
		(D) A credit to Accumulated Depreciation of $20,000