Problem - 1 (20 marks)

On 1 January 2016, Brad Corp. purchased an equipment for 2,000,000. This equipment is depreciated using a straight-line method. The useful life is 18 years and the residual value is expected to be 200,0000. The company uses revaluation model for the subsequent measurement of the equipment. The equipment is revalued at each year-ending on 31 December, if necessary. On 31 December 2016, the fair value of the equipment is 1,475,000 with the same residual value at 200,000.On 31 December 2017, the asset was revalued again at the amount of 1,600,000 with the same residual value of 200,000. The company's policy is to use the elimination method for any accumulated depreciation at the date of revaluation and transfer the revaluation reserve to retained earnings as the asset is used by the firm.

Required:

Prepare all relevant journal entries relating to the equipment for the period from 1 January 2016 to 31 December 2018. Indicate the date to each entry. Narratives for entries are not required. (20 marks)