PROBLEM:

ABC Company has a building with a carrying amount of $500,000 and a fair value of $700,000. The company has decided to revalue the building to its fair value. Calculate the revaluation gain and the new carrying amount.

Solution:

Revaluation gain = Fair value - Carrying amount = $700,000 - $500,000 = $200,000

New carrying amount = Carrying amount + Revaluation gain = $500,000 + $200,000 = $700,000

Here's the tabulated working calculation for the revaluation gain and new carrying amount:

To calculate the revaluation gain, we need to subtract the carrying amount of the building from its fair value ($700,000 - $500,000), which results in $200,000.

To calculate the new carrying amount, we need to add the revaluation gain to the carrying amount ($500,000 + $200,000), which results in $700,000.

Therefore, the revaluation gain is $200,000 and the new carrying amount is $700,000.