Question A- Jimmy uses IFRS and the revaluation model for its equipment. The company uses the option to close a portion of Revaluation Surplus for deprecation. The company uses straight line depreciation and after two years of use revalued the following equipment last year. Purchased the equipment on January 2, 2016 for $2,400,000. Estimated useful life of the equipment is 10 years. The equipment's estimated residual value is zero. Revalued the equipment on December 31, 2017 to $2,500,000. There is a balance in Revaluation Surplus associated with this equipment. One year after the revaluation, for the year ended December 31, 2028 the depreciation entry would include which of the following:

A debit to Retained Earnings of $72,500 A debit to Revaluation Surplus of $312,500 A debit to Revaluation Surplus of $72,500 A credit to Revaluation Surplus of $50,500 A credit to Retained Earnings of $50,500

Question B- Frank Footers uses IFRS and the revaluation model for its land. The company purchases land for $2,000,000 on January 1 2011. On December 31, 2013 the company revalued the land to $1,600,000. For its December 31, 2015 financial reporting the company estimates the fair value of the land to be $2,100,000. Among other things, the journal entry to revalue the land for December 31, 2015 would include the following:

a. A credit to Gain on Revaluation of $400,000

b. A credit to Revaluation Surplus of $400,000

c. A credit to Gain on Revaluation of $500,000

d. A credit to Revaluation Surplus of $500,000

e. A credit to Gain on Revaluation of $100,000