Use the Following Information for Questions

Use the following information for questions.
On January 1, 2011, Miles Inc.purchased equipment with a cost of €3,570,000, a useful life of
15 years and no salvage value.The company uses straight-line depreciation.At December 31, 2011, an independent appraiser determines that the fair value of the equipment is €3,500,000.Miles prepares financial statements using IFRS and elects to revalue the asset.
-In the second step of the 2-step revaluation process at the December 31, 2011, the journal entry to revalue the equipment will include a

A) debit to Depreciation Expense for €357,000.
B) credit to Equipment for €70,000.
C) credit to Accumulated Depreciation for €238,000.
D) credit to Revaluation Surplus for €70,000.