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Valley Ltd had a plot of land on its statement of financial position at 30 June 2018 at a net book value of 840,000. The

Valley Ltd had a plot of land on its statement of financial position at 30 June 2018 at a net book value of 840,000. The land was revalued at that date at 960,000. What will be the effect of the revaluation?

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The revaluation reserve will increase by 120,000.

The revaluation reserve will increase to 960,000.

The profit for the year will increase by 120,000.

The profit for the year will decrease by 120,000.

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