Khamel purchased a machine for £30,000 on 1 January 2018 and assigned it a useful life of 12 years. On 31 March 2020 it was revalued to £32,000 with no change in useful life.

What is the revaluation reserve in relation to this machine in the financial statements of Khamel for the year ending of 31 December 2020?

A. £2,000

B. £4,500

C. £7,000

D. £7,500