4.MN Company acquired equipment on January 1, 2017, for $120,000. This equipment is being depreciated on a straight-line basis over its six-year useful life. There is no residual value at the end of the 6-year period. The appraised value of the equipment approximates the carrying amount at December 31, 2017. On December 31, 2018, the fair value of the equipment is determined to be $100,000. MN Company decides to elect to value this class of equipment using revaluation model. Required:

(1)Prepare the journal entries for 2017 related to the equipment.

(2)Prepare the journal entries for 2018 related to the equipment.