DeVilla Ltd. on December 31, 2020, showed the following equipment asset:

Equipment	$100,000
Less: accumulated depreciation	20,000	80,000

All depreciation has been calculated for 2020. DeVilla uses straight-line depreciation for its equipment and at the end of 2020 the remaining useful life of the equipment is 8 years with no residual value. DeVilla uses the revaluation model to account for equipment and revalues the equipment every two years.

• On December 31, 2020, an independent appraiser assessed the fair value of the equipment to be $85,000.
• The only other time the equipment was revalued was on December 31, 2018, and the equipment was revalued with a loss on revaluation of $2,000.

Required:

(a)	Prepare the necessary general journal entry(ies), if any, to revalue the equipment as at December 31, 2020, using the asset adjustment method (as done in class).
(b)		Prepare the entry to record depreciation expense for the year ended December 31, 2021.

(c) Show how the equipment would be presented on the December 31, 2021 classified statement of financial position.

(d) Why do you think most Canadian companies reporting under IFRS are not using the revaluation method? (Point form is fine.)