Balance on the revaluation surplus of non-current asset ( video below)

A company bought a property four years ago on 1 January for $42,500. Since then property prices have risen substantially and the property has been revalued at $52,500.

The property was estimated as having a useful life of 20 years when it was purchased.

What is the balance on the revaluation surplus reported in the statement of financial position?

Answer

$

Valuation                                                52,500

Carrying amount (42,500 x 16/20)   (34,000)

Revaluation surplus                            18,500

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