Questions 7 Through 10 Are Based on the Following Information

Multiple Choice

Questions 7 through 10 are based on the following information:
Tongas Company applies revaluation accounting to plant assets with a carrying value of $1,600,000, a useful life of 4 years, and no salvage value. Depreciation is calculated on the straight-line basis. At the end of year 1, independent appraisers determine that the asset has a fair value of $1,500,000.
-The journal entry to adjust the plant assets to fair value and record revaluation surplus in year one will include a

A) debit to Accumulated Depreciation for $100,000.
B) credit to Depreciation Expense for $300,000.
C) credit to Plant Assets for $300,000.
D) credit to Revaluation Surplus for $300,000.