Use for questions $21$ and $22--$ Franco Company uses IFRS and owns a piece of property, plant and equipment that has a historical cost of $5,000,000.$ At December $31,2011,$ the company reported a valuation reserve of $8,365,000$ on all assets subject to revaluation. At December $31,2012,$ the property, plant and equipment above was appraised at $5,325,000.$

$21.$ The above mentioned piece of property, plant, and equipment will be reported on the December $31,2012$ balance sheet at:

A$.5,000,000.$

B$.5,325,000.$

C$.8,365,000.$

D$.8,690,000.$

$22.$ The valuation reserve at December $31,2012$ will be reported at:

A$.8,040,000$ on the Statement of Stockholders' Equity.

B$.8,690,000$ in the assets section of the Balance Sheet.

C$.8,690,000$ in the stockholders' equity section of the Balance Sheet.

D$.325,000$ on the Income Statement