Instructions: Answer the following questions. Provide all your computations.

Company ARL provides the following information on December 31, Year 1.

Equipment Cost $100,000

Purchases date January 1, Year 1

Residual Value $0

Useful Life 5 years

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

At December 31, Year 3 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 1.
2. Show the Operating Assets Schedule from Year 1 to Year 3.
3. Determine the new depreciation expense. (Year 2 and Year 3)