FRA p80 example 8

Hi, I have a question regarding this example. In question 1 it asks to calculate leverage using adjusted figures. I understand the adjustment for assets however regarding the adjustment to equity: why is shareholder’s equity not increased by the difference in depreciation expense due to the revaluation of the asset? ie) why is adjusted shareholders equity not: 1750(unadjusted figure)-150(revaluation surplus)+25(change in depreciation expense due to revaluation)? since depreciation expense affects shareholder’s equity through net income.

depreciation will also affect the accumulated depreciation **hence assets** in the opposite manner - and both effects should cancel each other out.