Impact of Fixed Asset Revaluation on Balance Sheet

ABC Corporation has recently revalued its fixed assets and reported the following changes in its balance sheet:

- Land and Buildings increased by $500,000 due to revaluation.
- Machinery and Equipment decreased by $200,000 because of obsolescence.
- Depreciation expense for the year remained consistent at $100,000.

Given the changes in the value of the fixed assets, which of the following statements regarding ABC Corporation's balance sheet is true?