Answer: €0.

**Explanation:** - **Option A (Incorrect):** The €2,500 increase in the asset's value during the first revaluation (from €25,000 to €27,500) is recorded in the revaluation surplus account in equity. The subsequent €5,000 decrease in value (from €27,500 to €22,500) is first applied to the revaluation surplus, reducing it by €2,500, and the remaining €2,500 is recorded in the income statement. This leaves the revaluation surplus at €0, not -€2,500. - **Option B (Correct):** The initial €2,500 increase in the asset's value bypasses the income statement and is recorded directly in the revaluation surplus account. The subsequent €5,000 decrease is first applied to the revaluation surplus, reducing it to €0, and the remaining €2,500 flows to the income statement. Thus, the revaluation surplus balance after the second revaluation is €0. - **Option C (Incorrect):** The €2,500 increase in the asset's value is correctly recorded in the revaluation surplus, but the subsequent €5,000 decrease is not solely applied to the income statement. Instead, it first reduces the revaluation surplus by €2,500, leaving the balance at €0, not €2,500.

Author: LeetQuiz Editorial Team