Exercise $4.$

ASSET A$.$

Asset A cost $80,000$ on $1$ January $2014.$ This asset came with a useful life of $10$ years and was revalued to $40,000$

on $31$ December $2019.$

ASSET B$.$

Asset B cost $80,000$ on $1$ January $2017.$ This asset came with a useful life of $5$ years and was revalued to $30,000$

on $31$ December $2019.$

Required:

Show how each of the gains or losses will be recorded within the revaluation reserve on the statement of profit or loss.