Question Klopp Co – Revaluation

Hi Chris,

I was going through the question before checking the video and on the part of the revaluation I have a bit of a difficulty…
1. Why directly from the cost of land and buildings (5,500,000) you moved to the revaluation? Shouldn’t we first record the cost less the accumulated depreciation for the buildings and then revaluate the carrying value, considering as well the timeline?
2. Then the depreciation of the historic cost and the depreciation of the revaluation cost should be divided on the remaining 45 years and the difference will go to the retained earnings?

I was thinking that I knew what I was doing with the revaluation, until this working.

Will appreciate your help