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Question - AH owns three hotels. It has employed a firm of surveyors to revalue some of its properties during the past year. The directors have decided that the valuations should be incorporated into the entity's financial statements. This is the first time that such a revaluation has taken place and the accountant responsible for the preparation of the non-current asset note in the statement of financial position is unsure of the correct treatment of the amounts involved. The entity's year end is 30 September 20X4. The accountant has extracted the following table from the report prepared by the surveyors:
Original cost $000
Depreciation to 30 Sep 20X3 $000
Market value at 1 Jan 20X4 $000
Hotel G
400
96
650
Hotel H
750
56
820
Hotel K
500
70
320
Required - What would be the balance on the revaluation reserve at 30 September 20X4?
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