At the Beginning of the 20X1 Financial Year,Vaughn Downs Ltd

At the beginning of the 20X1 financial year,Vaughn Downs Ltd owned a forest with an estimated net realisable value of $8 000 000.During the year,Vaughn Downs spent $300 000 on general administration costs and $400 000 on maintaining and improving the forest.Also during the year the company felled some timber from the forest that had an estimated net realisable value of $3 000 000.Costs of felling and treating the timber amounted to $800 000.The timber was sold later in the year for $3 100 000.At the end of the year,the forest had an estimated net realisable value of $8 700 000.The financial statements for the year should report:

A) a profit from operations of $1 700 000 and an increase in the revaluation surplus of $700 000
B) a profit from operations of $1 700 000
C) a profit from operations of $2 100 000 and an increase in the revaluation surplus of $300 000
D) a profit from operations of $2 300 000