Maple Inc. owns equipment that it purchased on January 1, 2018 for $4 Million.

The following additional information is available:

Depreciation: 10-year useful life, straight line basis, no residual.

Dec 31, 2018 Book value (after recording 2018 depreciation): $3,600,000

Dec 31, 2018 Fair value: $4,500,000

Dec 31, 2019 Fair value $3,000,000

The company uses the revaluation model (asset adjustment method) to account for its property, plant and equipment.

Instructions

Assuming the entry for the current year's depreciation has already been recorded, prepare the entr(ies) at:

1. Dec 31, 2018
2. Dec 31, 2019