The following information applies to the questions displayed below Dower Corporation prepares its financial statements according to IFRS On March 31, 2021, 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, 2021, the end of the companys fiscal year, Dower chooses to revalue the equipment to its fair value of $224,000.

a. Calculate the revaluation of the equipment assuming that the fair value of the equipment at the end of 2021 is $162,000.

b. Assume that the fair value of the equipment at the end of 2021 is $162,000. Prepare the journal entry to record the revaluation of the equipment.

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Ans a Before Revaluation After Revaluation Equipment 240000 ... View the full answer