Hendersons Ltd has just begun to revalue its plant and equipment.The following information about the items included in this class of non-current assets shows their carrying value,and most recent revaluation.

\begin{array} { | l | r | r | r | } \hline { \text { Item } } & \text { Cost } & \begin{array} { c } \text { Accumulated } \\\text { depreciation }\end{array} & \begin{array} { c } \text { Fair value as at 31 } \\\text { December 2002 }\end{array} \\\hline \text { Lathe } & 34000 & 6700 & 25000 \\\hline \text { Grinder } & 12000 & 1400 & 12000 \\\hline \text { Stamp machine date? } & 65000 & 14000 & 60000 \\\hline\end{array}

What is/are the appropriate journal entry(ies)to record the revaluations using the net method?
A)

\begin{array} { | l | l | r | r | } \hline \mathrm { Dr } & \text { Accumulated depreciation- lathe } & 6700 & \\\hline \mathrm { Dr } & \text { Accumulated depreciation -grinder } & 1400 & \\\hline \mathrm { Dr } & \text { Accumulated depreciation -stamp machine } & 14000 & \\\hline \mathrm { Cr } & \text { Lathe } & & 6700 \\\hline \mathrm { Cr } & \text { Grinder } & & 1400 \\\hline \mathrm { Cr } & \text { Stamp machine } & & 14000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Grinder } & 1400 & \\\hline \mathrm { Dr } & \text { Stamp machine } & 9000 & \\\hline \mathrm { Cr } & \text { Lathe } & & 2300 \\\hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 8100 \\\hline\end{array}

\begin{array} { | l | l | l | l | } \hline \mathrm { Dr } & \text { Loss on revaluation } & 14000 & \\\hline \mathrm { Cr } & \text { Stamp machine } & & 5000 \\\hline \mathrm { Cr } & \text { Lathe } & & 9000 \\\hline\end{array}

\begin{array} { | l | l | r | r | } \hline \mathrm { Dr } & \text { Accumulated depreciation- lathe } & 6700 & \\\hline \mathrm { Dr } & \text { Accumulated depreciation- grinder } & 1400 & \\\hline \mathrm { Dr } & \text { Accumulated depreciation -stamp machine } & 14000 & \\\hline \mathrm { Cr } & \text { Lathe } & & 6700 \\\hline \mathrm { Cr } & \text { Grinder } & & 1400 \\\hline \mathrm { Cr } & \text { Stamp machine } & & 14000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Grinder } & 1400 & \\\hline \mathrm { Dr } & \text { Stamp machine } & 9000 & \\\hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 10400 \\\hline \mathrm { Dr } & \text { Loss on revaluation } & 2300 & \\\hline \mathrm { Cr } & \text { Lathe } & & 2300 \\\hline\end{array}

\begin{array} { | l | l | r | r | } \hline \mathrm { Dr } & \text { Stamp machine } & 9000 & \\\hline \mathrm { Dr } & \text { Grinder } & 1400 & \\\hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 10400 \\\hline & & & \\\hline \mathrm { Dr } & \text { Loss on revaluation } & 2300 & \\\hline \mathrm { Cr } & \text { Lathe } & & 2300 \\\hline\end{array}

Where the Value of Revalued Non-Current Assets Does Not Change

Multiple Choice

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