How much is the revaluation surplus

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Question - On Jan. 1, 2020, GHI Corporation acquired a 2,000,000 equipment which it accounts under the revaluation model. It can be used in the production line for 10 years. After use, it can be sold for 250,000.  On Jan. 1, 2023, GHI is revaluing the asset. It has a sound value of 2,250,000 and a revised residual value of 500,000.

If GHI uses the proportional method, what is the journal entry on Jan. 1, 2023 to record the revaluation? How much is the revaluation surplus to be recognized? Solutions must be in good accounting form.

Reference no: EM132958157

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