You work in the Accounting Policy Group of Radley International, Inc., a U.S. publicly-held manufacturer of women's handbags and other fashion accessories. In February 2020, Radley acquired Carlson International, Ltd., a UK-based company that is listed on the London Stock Exchange and NASDAQ. Carlson prepares its consolidated financial statements in accordance with IFRS. You have been assigned to the acquisition team based upon your in-depth knowledge of both U.S. GAAP and IFRS. Your role is to assist your peers at Carlson to prepare Income Statements under both IFRSandUS GAAP.

After detailed discussions with the Controller of Carlson and their financial reporting team, you identify the key differences between IFRS and U.S. GAAP for 2019. Your summary is below:

IAS 16: PP&E

Carlson uses the straight-line method to depreciate its property, plant & equipment. Carlson has four PP&E categories: (1) land, (2) buildings, (3) machinery & equipment, and (4) furniture & fixtures. A building was purchased on January 3, 2018 for $3,250,000. It has an estimated useful life of 25 years and an estimated residual value of $250,000. The company elected the revaluation model under IAS 16 to determine the carrying value of its buildings subsequent to acquisition.

In January 2019, the building was appraised, and was determined to have a fair value of $3,850,000. There was no change in the estimated useful life or residual value of the building. Carlson determined that a new appraisal was not warranted at December 31, 2019. Carlson uses the historical cost method for all other categories of PP&E.

What is the adjustment using IFRS to put in income statement? What is the adjustment using U.S. GAAP to put in income statement?