Answer Happy

A company uses the revaluation method. At the beginning of its
first year of operations, the company purchased equipment with a
cost of $100,000. Using the straight-line method of depreciation
with a 10-year life and no residual value, the company then
recorded depreciation for the first year. Immediately following
this, the company revalued the equipment to $63,000. At the end of
the second year, after recording depreciation, the company again
re-valued the equipment, this time to $120,000. Based on the above,
the company would record during the second Year
options:
Depreciation expense of $7,000, a revaluation gain on the income
statement of $24,000 and a revaluation gain/surplus in other
comprehensive income of $40,000
Depreciation expense of $7,000, a revaluation gain on the income
statement of $27,000 and a revaluation gain/surplus in other
comprehensive income of $37,000
Depreciation expense of $10,000, a revaluation gain on the
income statement of $27,000 and a revaluation gain/surplus in other
comprehensive income of $37,000
Depreciation expense of $7,000, a revaluation gain on the income
statement of $0 and a revaluation gain/surplus in other
comprehensive income of $64,000