Wilson Company maintains its records under IFRS.

During the current year Wilson sold a piece of equipment used in production. The equipment had been accounted for using the revaluation method and details of the accounts and sale are presented below:

Sales price $100,000 Equipment book value (net) 90,000 Revaluation surplus 20,000 Which of the following is correct regarding recording the sale?

a. The gain that should be recorded in profit and loss is $30,000.

b. The gain that should be recorded in other comprehensive income is $10,000.

c. The gain that should be recorded in other comprehensive income is $30,000.

d. The gain that should be recorded in profit and loss is $10,000; the $20,000 revaluation surplus should be transferred to retained earnings.