Manchester Ltd Has a Building That Originally Cost $850 000

Multiple Choice

Manchester Ltd has a building that originally cost $850 000 and has accumulated depreciation of $120 000 as at 30 June 2012.It is decided on 1 July 2012 that the building should be revalued to $820 000.What are the appropriate entries to record the revaluation using the net method?

A)
$$\begin{array} { | l | l | l | l | } \hline \mathrm { Dr } & \text { Asset revaluation reserve } & 30000 & \\\hline \mathrm { Cr } & \text { Building } & & 30000 \\\hline\end{array}$$
B)
$$\begin{array} { | l | l | l | l | } \hline \mathrm { Dr } & \text { Building } & 90000 & \\\hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 90000 \\\hline\end{array}$$
C)
$$\begin{array} { | c | l | c | c | } \hline \mathrm { Dr } & \text { Accumulated depreciation-building } & 30000 & \\\hline \mathrm { Cr } & \text { Building } & & 30000 \\\hline \mathrm { Dr } & \text { Accumulated depreciation } & 90000 & \\\hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 90000 \\\hline\end{array}$$
D)
$$\begin{array} { | c | l | c | c | } \hline \mathrm { Dr } & \text { Accumulated depreciation-building } & 120000 & \\\hline \mathrm { Cr } & \text { Building } & & 120000 \\\hline \mathrm { Dr } & \text { Building } & 90000 & \\\hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 90000 \\\hline\end{array}$$