1. BTS Inc. purchases equipment for $1,000,000 on January 2, 2019. The equipment has a useful life of five years, is depreciated using the straight-line method of depreciation, and its residual value is zero. BTS chooses to revalue its equipment to fair value over the life of equipment. Please provide the journal entry for the bellows.

1. Provide the journal entry for the depreciation on December 31, 2019.

2. After the entry in (1), BTS employs an independent appraiser, who determines that the fair value of equipment at December 31, 2019, is $950,000. Provide the journal entry for the revaluation on December 31, 2019.

3. Assuming no change in the useful life of the equipment, provide the journal entry for depreciation expense on December 31, 2020.

4. Please provide the journal entry if BTS selects to transfer the accumulated unrealized gain on revaluation to the retained earnings.

5. After the entry in (3) & (4), BTS determines through appraisal that the equipment now has a fair value of $570,000. Provide the journal entry for the revaluation on December 31, 2010.