Smith Company Is an IFRS Reporter

Smith Company is an IFRS reporter. After 3 full years of use, the Smith Company revalues equipment with a carrying value of $980,000 to its fair value of $1,200,000 using the accumulated depreciation elimination method. The original cost of the equipment is $1,400,000 and the equipment has a useful life of 10 years with no scrap value. Smith depreciates under the straight-line method. What is the new carrying value of the asset?

A) $980,000
B) $1,120,000
C) $1,200,000
D) $1,400,000