Instructions: Answer the following questions. Provide all your computation when necessary.

Company ABC provides the following information at December 31, 2001.

Equipment Cost $100,000

Purchases date January 1, 2001

Residual Value $0

Useful Life 5 years

Fair Value at end of first year $84,000.

At December 31, 2003 the market value of the asset is $30,000.

Requires: Using Revaluation Model of IAS 16 Proportional Method and Elimination Method to determine:

1. Revaluation amount at the end of year 2001.

2. Show the Operating Assets Schedule from 2001 to 2003.

3. Determine the new depreciation expense. (2002 and 2003)

4. Determine the book value of the assets at year before any adjustment (2003) and after adjustment (2003).

5. What is the amount of revaluation assets at the end of year 2003? Explain.