Use the Following Information to Answer This Question B) $\begin{array}{lll}\text { Machinery } & \mathrm{Dr} & 50,000 \\\text { Gain on revaluation \_ OCI } & \mathrm{Cr} && 50,000 \\\end{array}$

Use the following information to answer this question. The draft statement of financial position for Banjo Ltd as at 30 June 2021 discloses the following:
Machinery (at cost) $750 000
Less Accumulated depreciation 400 000 $350 000
On the same date, Banjo Ltd assessed the fair value of the machinery to be $400 000.
The tax rate is 30%. Depreciation rates are 10% p.a. (accounting) and 12.5% p.a. (tax) using the straight-line method.
In accordance with IAS 16 Property, Plant and Equipment, the journal entries necessary to record the revaluation of machinery (ignoring any tax effect) at 30 June 2021 is:

A) $\begin{array}{llll}\text { Accumulated depreciation - Machinery } & \mathrm{Dr} & 400,000 & \\\text { Machinery } & \mathrm{Cr} & & 400,000 \\& & & \\\text { Machinery } & \mathrm{Dr} & 50,000 & \\\text { Gain on revaluation\_OCI } & \mathrm{Cr} & & 50,000\end{array}$
B) $\begin{array}{lll}\text { Machinery } & \mathrm{Dr} & 50,000 \\\text { Gain on revaluation \_ OCI } & \mathrm{Cr} && 50,000 \\\end{array}$
C) $\begin{array}{lll}\text { Gain on revaluation \_ OCI } & \mathrm{Dr} & 50,000 \\\text { Asset revaluation surplus }& \mathrm{Cr} && 50,000 \\\end{array}$
D) $\begin{array}{llr}\text { Machinery } & \mathrm{Dr} & 350,000 \\\text { Gain on revaluation - OCI } & \mathrm{Dr} & 50,000 \\\text { Accumulated depreciation } & - \mathrm{Cr}&&400,000\\\text { Machinery }\end{array}$