Question 3 (1 point)

Evolution Corp. follows the proportional method for revaluation of its property, plant, and equipment. On December 31, 20X3, Evolution paid $200,000 for vacant land and elected to subsequently value it using the revaluation model. It is now December 31, 20X7. A summary of the lands fair value at Evolutions intervening year end follows:

December 31, 20X4 $170,000

December 31, 20X5 $195,000

December 31, 20X6 $190,000

December 31, 20X7 $240,000

How should Evolution report the revaluation of the land on its December 31, 20X7, statement of comprehensive income?

*ROL revaluation of land

Question 3 options:

Credit $10,000 gain ROL* profit or loss and $40,000 gain ROL OCI

Credit $40,000 gain ROL profit or loss and $10,000 gain ROL OCI

Credit $50,000 gain ROL OCI

Credit $50,000 gain ROL profit or loss