Babok Inc prepares financial statements in accordance with IFRS and has elected to use revaluation model to account for its building babok inc aquired a buildi g on January 1, 20x4 for 300,000. At that time it estimated the useful life of the building to be 60 years with no residual value. It is January 1 20x4. The carrying amount of the building is $275,000($300,000-(5$5,000). Baboc iinc has obtained an appraisal valuing the building at $385,000. (1) show the Accounting entries to recognize the valuation and corresponding depreciation in 204. (2) show the balance on the building and revaluation surplus account ason Dec 31, 204

Part 2

On January 1, 205, a major fire damages a significant part of the building. Babok, inc has no insurance and the value of the damaged building is impaired such that the remainder of the building is valued at $250, show the entries to reflect the impairment on January 1, 305