Statements of financial position

Dear Tutors, Please help me explain Note 2 below, I do not know the effect of this note to the question because without this note, I can still calculate all amounts question required (eg: Addition of NCA, Depreciation chare): "The revaluation surplus arose from the revaluation of some land that was not being depreciated" This is the full question without their figures: "The following information is available for Sioux, a limited liability company: Statements of financial position for 2 years X4 and X3 (with many figures I can not type here) Non-current assets Cost or valuation Accumulated depreciation Carrying value Current assets Inventories Receivables Cash at bank Equity and liabilities Capital and reserves Ordinary share capital Revaluation surplus Retained earnings Non-current liabilities 10% Loan notes Current liabilities Trade payables Income tax Summarised statement of profit or loss for the year ended 31 December 20X4 Profit from operations 2,650 Finance cost (loan note interest) (300) Income tax expense (700) Net profit for the year 1,650 Notes 1/ During the year non-current assets which had cost $800,000, with a carrying value of $350,000, were sold for $500,000. 2/ The revaluation surplus arose from the revaluation of some land that was not being depreciated. 3/ The 20X3 income tax liability was settled at the amount provided for at 31 December 20X3. 4/ The additional loan notes were issued on 1 January 20X4. Interest was paid on 30 June 20X4 and 31 December 20X4. 5/ Dividends paid during the year amounted to $750,000. Required Prepare the company's statement of cash flows for the year ended 31 December 20X4, using the indirect method, adopting the format in IAS 7 Statement of cash flows. (15 marks)" Thank you so much.