On December 31, Year 1, an entity revalued its machinery. On that date, the entity gathered the following information to aid in the revaluation: | |
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| Historical cost | $ 500,000 | | Accumulated depreciation | 140,000 | | Fair value | 420,000 |
On December 31, Year 1, the entity will report:
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a. | A revaluation gain of $60,000 in other comprehensive income. | |
b. | A revaluation gain of $60,000 on the income statement. | |
c. | A revaluation loss of $80,000 in other comprehensive income. | |
d. | A revaluation loss of $80,000 on the income statement. |
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