Question: Question 15 (2 points) On December 31, 2016, an entity purchased land at a cost of $400,000. The entity uses the revaluation model for land

Question 15 (2 points)

On December 31, 2016, an entity purchased land at a cost of $400,000. The entity uses the revaluation model for land and fair values of the land at December 31, 2018 and 2020 are $470,000 and $380,000 respectively. On June 1, 2021, the land is sold for $340,000.

What is the amount of gain or loss that will appear in the Statement of Comprehensive income for the year ended December 31, 2021?

Question 15 options:


a)	Revaluation loss of $40,000 in the Profit and Loss component

b)	Revaluation loss of $40,000 in the OCI component

c)	Revaluation loss of $60,000 in the Profit and Loss component

d)	Revaluation loss of $60,000 in the OCI component

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