Revaluation of property to current value under the revaluation model Steps: - Calculate carrying amount: historical cost $80,000 minus accumulated depreciation$25,000 = $55,000.-Determinerevalua$100,000 minus carrying amount 45,000 increase. - Eliminate accumulated depreciation against gross carrying amount: debit provision for depreciation 25,000 (net asset unchanged at 45,000, credit revaluation reserve 20,000, credit revaluation reserve 20,000 reflects the net adjustment to historical cost after depreciation elimination. Why the others are wrong: - A: Credits revaluation gain to statement of profit or loss, violating IAS 16 which routes it to revaluation reserve. - B: Involves provision adjustment and profit or loss credit, but revaluation does not affect profit or loss and entry is unbalanced. - C: Uses $45,000 increase but …