Thorncliff Estates applies the revaluation model to land under IAS 16.
| Date | Event |
|---|
| January 5, 2025 | Purchased land for $150,000 cash. |
| December 31, 2025 | A professional valuation reports the land’s fair value as $190,000. The company revalues the land. |
Required: Prepare the entry for the land purchase and the year-end revaluation. The $40,000 increase is credited to a Revaluation Surplus (equity/other comprehensive income).