Part A already done, please complete part B

Prepare any journal entries required under situation $1$ described above for: $(1)$ the fiscal year ended December $31,2023$; $(2)$ the

fiscal year ended December $31,2024$; and $(3)$ the disposal of the equipment on March $31,2025.($Credit account titles are

automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles

and enter $0$ for the amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Accumulated Depreciation $-$ Equipment

Depreciation Expense

Accumulated Depreciation $-$ Equipment

Depreciation Expense

Accumulated Depreciation $-$ Equipment

$($To record depreciation on equipment$)$

Accumulated Depreciation $-$ Equipment

Gain on Disposal of Equipment

$($To record disposal of equipment$)$ Your answer is partially correct.

Prepare any journal entries required under situation $2$ described above for: $(1)$ the fiscal year ended December $31,2023$; $(2)$ the

fiscal year ended December $31,2024$; and $(3)$ the disposal of the equipment on March $31,2025.($Credit account titles are

automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles

and enter $0$ for the amounts. List all debit entries before credit entries. Round answers to $0$ decimal places, e$.$g$.5,275.)$

Account Titles and Explanation

Depreciation Expense

Accumulated Depreciation $-$ Equipment

$($To record depreciation of equipment$)$

Accumulated Depreciation $-$ Equipment

$($To eliminate the accumulated depreciation$)$

Revaluation Surplus $($OCI$)$

$($To adjust the equipment account to fair value$)$

Depreciation Expense

Accumulated Depreciation $-$ Equipment

$($To record depreciation on equipment$)$

Accumulated Depreciation $-$ Equipment

$($To record depreciation on equipment$)$Cheyenne Corporation is a public company that manufactures farm implements, such as tractors, combines, and wagons. Cheyenne

uses the revaluation model per IAS $16,$ and records asset revaluations using the elimination method. $($This means the balance in the

Accumulated Depreciation account is eliminated against the asset account just prior to revaluation of the asset to fair value.$)$ A piece

of manufacturing equipment included in the property, plant, and equipment section on Cheyenne's statement of financial position was

purchased on December $31,2022,$ for a cost of $$91,000.$ The equipment was expected to have a remaining useful life of $5$ years, with

benefits being received evenly over the $5$ years. Residual value of the equipment was estimated to be $$9,000.$

Consider the following two situations:

Situation $1$: At December $31,2023,$ no formal revaluation is performed, as management determines that the carrying amount of the

property, plant, and equipment is not materially different from its fair value.

Situation $2$: At December $31,2023,$ a formal revaluation is performed and the independent appraisers assess the equipment's fair

value to be $$82,000.$ During the revaluation process, it is determined that the remaining useful life of the equipment is four years, with

a residual value of $$10,000.$

At December $31,2024,$ no formal revaluation is performed, as management determines that the carrying amount of the property,

plant, and equipment is not materially different from its fair value. The equipment is sold on March $31,2025,$ for $$56,000.$