A company has always previously recorded its freehold land at its historical cost of £129,000.

It has recently had its land valued by a firm of professional valuers who advise that the land is now worth £0.6m. The directors wish to incorporate this new value in the financial statements. What entries are required to do this?

(A) Dr Freehold land £600,000, Cr Revaluation reserve £600,000

(B) Dr Freehold land £471,000, Cr Revaluation reserve £471,000

(C) Dr Revaluation reserve £600,000, Cr Freehold land £600,000

(D) Dr Revaluation reserve £471,000, Cr Freehold land £471,000