Dower Corporation prepares its financial statements according to IFRS – Prepare the journal entry to record the revaluation of the equipment

Dower Corporation prepares its financial statements according to IFRS. On March 31, 2016, the company purchased equipment for $240,000. The equipment is expected to have a six-year useful life with no residual value. Dower uses the straight-line depreciation method for all equipment. On December 31, 2016, the end of the company’s fiscal year, Dower chooses to revalue the equipment to its fair value of $220,000.

Calculate the revaluation of the equipment.
Prepare the journal entry to record the revaluation of the equipment. (If no entry is required for a transaction/event, select & ;No journal entry required &; in the first account field.
Calculate depreciation for 2017.
Calculate the revaluation of the equipment assuming that the fair value of the equipment at the end of 2016 is $195,000.
Assume that the fair value of the equipment at the end of 2016 is $195,000. Prepare the journal entry to record the revaluation of the equipment.

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