Kwang Ltd purchased equipment on 1 January 2015 for $100,000. It had an estimated useful life of 5 years and an estimated residual value of $20,000. Each year $800 is spent on the maintenance of the equipment. On 1 July 2017, $10,000 was spent on a major overhaul of the equipment after which it will have an expected useful life of 4 years and zero residual value. The entity's reporting period ends on 30 June and it uses straight-line depreciation method. Note: Ignore GST Required: a) Calculate the depreciation expense for 2015 and 2016. (2 marks) (3 marks) b) Prepare the journal entry for the $10,000 overhaul of the equipment. Calculate depreciation expense for 2018. c) (3 marks) Part B Solomon Ltd has disclosed the following non-current assets as at 30 June 2021. Machinery $310,000 Less Accumulated Depreciation $100,000 210,000 Buildings $500,000 Less Accumulated Depreciation $100.000 400,000 At 1 July 2021, the directors of Solomon Ltd decide to adopt the revaluation model and revalue the non-current assets to the following fair values. Machinery Buildings $200,000 $460,000 Required: a) Prepare the necessary general journal entries at 1 July 2021 to record the revaluation. (4 marks) b) Discuss how a company should account for the subsequent revaluation increase and a revaluation decrease on a non-current asset