Alexandra Corp. bought the equipment in January 2017 for $500,000. It has an expected useful life of 25 years with no residual value. The company uses the straight-line method of depreciation. The company follows IFRS and uses the revaluation model, revalues assets every third year. The fair value of the equipment is as follows:

December 31, 2019 $450,000

December 31, 2022 $375,000

Requirements:

Use revaluation model to assess the equipment on each of the revaluation date as per

-Asset adjustment method

- Proportionate method

You are required to provide all the calculations and the journal entries under each method.