Exercise 11-27 Falcetto Company acquired equipment on January 1, 2014, for 12,000. Falcetto elects to value this class of equipment using revaluation accounting. This equipment is being depreciated on a straight-line basis over its 6-year useful life. There is no residual value at the end of the 6-year period. The appraised value of the equipment approximates the carrying amount at December 31, 2014 and 2016. On December 31, 2015, the fair value of the equipment is determined to be 7,000. Your answer is correct. Prepare the journal entries for 2014 related to the equipment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit January 1, 2014 Equipment 12000 Cash 12000 December 31, 2014 Depreciation Expense 2000 Accumulated Depreciati 2000 SHOW LIST OF ACCOUNTS SHOW ANSWER LINK TO TEXT Your answer is partially correct. Try again. Prepare the journal entries for 2015 related to the equipment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit December 31, 2015 IX Accumulated Depreciation- (To record depreciation on equipment) December 31, 2015 Loss on Impairment > (To record loss on equipment) * Your answer is incorrect. Try again. Determine the amount of depreciation expense that Falcetto will record on the equipment in 2016. Depreciation expense