Assume a client uses IFRS reporting and has a machine that costs $100,000 on 1/1/2021. Depreciation is 10% per year with no salvage value.

The fair value is:

$180,000 on 1/1/2022

$60,000 on 1/1/2023

$77,000 on 1/1/2024

$120,000 on 1/1/2025

The company’s policy is to transfer the realized portion of the revaluation surplus to retained earnings as the asset is used.

Prepare a schedule that shows the statement of financial position and ledger accounts for each year ending December 31, 2021, to 2025. Prepare the asset’s account as a net carrying amount (do not separate cost and accumulated depreciation accounts).