*E10-25(Measurement after AcquisitionRevaluation Model) A partial statement of financial position of Bluewater Ltd. on December 31, 2016, showed the following property, plant, and equipment assets accounted for under the cost model (accumulated depreciation includes depreciation for 2016):

Buildings $350,000

Less: accumulated depreciation 50,000

=$300,000

Equipment $120,000

Less: accumulated depreciation 40,000

= $80,000

Bluewater uses straight-line depreciation for its building (remaining useful life of 20 years, no residual value) and for its equipment (remaining useful life of 8 years, no residual value). Bluewater applies IFRS and has decided to adopt the revaluation model for its building and equipment, effective December 31, 2016. On this date, an independent appraiser assessed the fair value of the building to be $275,000 and that of the equipment to be $90,000.

Instructions

(a) Prepare the necessary general journal entry(ies), if any, to revalue the building and the equipment as at December 31, 2016, using the asset adjustment method.

(b) Prepare the entries to record depreciation expense for the year ended December 31, 2017.

(c) Repeat parts (a) and (b) using the proportionate method to revalue the building and the equipment.

'3' E] III-15 Measurement after AcquisitiunlRevaluau'n Hudte {LU its lft l A partial statement cf Fmaneial pnsiliun nfBluewatH Ltd. un Deeember 3], 21] I3, shunted the fulluwing property, plant, and Equipment eeriets aceunnted fer under the east mudel [accumulated depreciaun includes depreciation fur EDIE]: Buildings $.3me Less: accumulated depreciatimi [mm $2I},f} Equipment iillll Less: accumulated depteciatimi Milli]? Emil]? Bluewater uses straight-line depreciatjcn for its building [:remajning useful life ufll] feats, nu residual value] and fur its equipment {remaining useful life cf eight years, nu- residual value}. BluewateI applies IFRS and has decided in adopt the revaluatieu medel far its building and equipment, effective December 3 i, 21\"} Chi. this date, an independent appraiser assessed the fair value nf the building tun be $lil'l} and that Hi the equipment to be time}. lnstruc-tic us {3] Prepare the namely gel'teraljrma] Intries], if any, Lu revalue the birilding and the equipment as at December 3 I, 21113, using the sweet adjusu'nent melhud. [I1] Prepare the enuiestelecm'd depreciatjun expense fer the veaI ended December 31, test. [1:]- Repeat pans {a} and {b} using the pmpmurnate rnethcd tcr revalne the building and the equipment