Bracy Company acquired a new piece of construction equipment on January 1, 2015, at a cost of $199,000. The equipment was expected to have a useful life of 14 years and a residual value of $17,000 and is being depreciated on a straight-line basis. On January 1, 2016, the equipment was appraised and determined to have a fair value of $202,770, a salvage value of $17,000, and a remaining useful life of thirteen years.

a. Depreciation Expense

	2015	2016	2017
IFRS	$13,000	????	????
US GAAP	$13,000	$13,000	$13,000
Difference	0

Book Value of Equipment

	12/31/15	12/31/16	12/31/17
IFRS	$186,000	????	????
US GAAP	$186,000	????	$160,000
Difference	0