Problem $1($Points $30)$

Panther Ltd acquired a plant on January $1,2022$ at a cost

of $$90$ million. The plant has a $20-$year life, $10$ million

residual value, and it is depreciated on a straight$-$line

basis. On January $1,2025,$ Panther determines the fair

value of the asset $($net of any accumulated depreciation$)$ to

be $$140$ million.

Required:

Determine the impact the plant has on Panther's

income in Years $2022-2026$ using $($a$)$ IFRS, assuming

that the revaluation model is used for measurement

subsequent to initial recognition, and $($b$)$ U$.$S$.$ GAAP.

Summarize the difference in income, total assets, and

equity using the two different sets of accounting

standards over the period $2022-2026.$