Nok Co. purchases equipment for €1,000,000 on January 2, 2022. The equipment has a useful life of five years, is depreciated using the straight-line method of depreciation, and its residual value is zero. The company chooses to revalue its equipment to fair value over the life of equipment. The company employs an independent appraiser, who determines that the fair value of equipment at December 31, 2022, is €950,000.

Required:

1. Calculate the amount of depreciation expense for the year ended December 31, 2022 before revaluation. Provide supporting calculations.

2. Make a double entry (Dr,Cr) to recognise the depreciation expense as of December 31, 2022before revaluation.

3. Make a double entry (Dr,Cr) to recognise the revaluation of the equipment as of December 31, 2022 after accounting for depreciation in this year.

4. Make a double entry (Dr,Cr) to recognise the depreciation expense as of December 31, 2023.