ABC Inc. has substantial Machinery & Equipment. The company applies the Revaluation Surplus model for these assets. The company had no Revaluation Surplus OCI - Machinery on its books for these assets:
Book Values (after taking depreciation but before revaluation entry) and Fair Values for the following 2 years are shown below: (the table values are in 000's):

\begin{array} { | l | l | l | } \hline & \text { BV } & \text { FV } \\\hline \text { December 31, Year 2 } & 60 & 90 \\\hline \text { December 31, Year 3 } & 120 & 80 \\\hline\end{array}

\begin{array} { | l | l | l | } \hline & \text { BV } & \text { FV } \\\hline \text { December 31, Year 2 } & 60 & 90 \\\hline \text { December 31, Year 3 } & 120 & 80 \\\hline\end{array}

-ABC's December 31^st, Year 3 revaluation entry would include:
A) A loss of $40,000 which would appear on the income statement.
B) A debit to Revaluation Surplus - Machinery & Equipment in the amount of $40,000.
C) A loss of $20,000 to the income statement and a debit Revaluation Surplus - Machinery & Equipment in the amount of $20,000.
D) A loss of $30,000 to the income statement and a debit Revaluation Surplus - Machinery & Equipment in the amount of $10,000.

For Financial Statement Purposes (For a Non-Manufacturing Company), Amortization Is

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