Townend Ltd has the following assets in its statement of financial position as at 30 June 2022.The plant and equipment originally cost Townend $600 000 in 2020, but due to market conditions the fair value of the plant and equipment has increased. The directors of Townend Ltd are concerned about the effects of the higher carrying value on profits owing to the higher depreciation it is reducing profits. They ask you, the accountant, to reverse the previous revaluation. Being ethical in nature, what would you do?

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$ Plant and equipment, at independent valuation 2 000 000 400 000 Less: Accumulated depreciation Carrying amount 1 600 000