Alpha Inc. owns equipment that it purchased on January 1, 2019, for $100,000. The machine has a ten-year useful life and no residual value. The straight-line depreciation is being used.

The company uses the revaluation model to account for its property, plant, and equipment every two years. On the revaluation date, at December 31, 2020, the machine has a fair value of $85,000

Required

Using the revaluation model, prepare the entr(ies) to adjust the asset's carrying amount to fair value. You can use either the asset adjustment method or the proportionate method.

	Debit	Credit