Machinery was purchased on 1^st Jan, 2010 @$150,000 having useful life of 15 years and residual value of $25,000. Company used straight line method to depreciate machinery and carrying its assets on revaluation model.

Fair value is calculated in 2013 @ $180,000 and in 2018 @ $70,000.

REQUIRED:

Calculate depreciation expenses of year ending 31^st Dec 2018 and 31^st Dec 2019.

Calculate carrying value of asset on 31^st Dec 2018 before revaluation and after revaluation.

Calculate balance on revaluation reserve on 31se Dec, 2013 and 31^st Dec, 2018 before revaluation adjustment and after revaluation.