PROBLEM $2(10$Marks$)$

Part A $(6$Marks$)$

Consider the following information for ABC Corporation:

$-$Building purchased in Jan $2020$for $$200,000$

$-$Company uses the revaluation model $($asset$-$adjustment method$),$revalues every third year, using straight$-$line deprecation.

$-$Life Expectancy, $25$years

$-$No residual value

$-$ Fair$-$value on Dec $31,2022$: $$180,000$

$-$ Fair$-$value on Dec $31,2025$: $$150,000$

Required:

A$.$Calculate depreciation expenses for the year $2020,2021,$and $2022.$Determine the balance of accumulated depreciation expense on Dec $31,2022,$and provide the journal entry to eliminate accumulated depreciation.

B$.$Calculate the carrying value of the building on Dec $31,2022$test for revaluation and provide the journal entries for revaluation.

C$.$Calculate depreciation expenses for the years $2023,2024,$and $2025.$Determine the balance of accumulated depreciation expense on Dec $31,2025,$and provide the journal entry for the elimination of accumulated depreciation.

D$.$Calculate the carrying value of the building on Dec $31,$test for revaluation and provide the journal entries for revaluation.

You must show all calculations. You will get zero grade if journal entries are not supported by calculations.