Required information

[The following information applies to the questions displayed below.] Dower Corporation prepares its financial statements according to IFRS. On March 31, 2021, the company purchased equipment for $216,000. The equipment is expected to have a six-year useful life with no residual value. Dower uses the straight-line depreciation method for all equipment. On December 31, 2021, the end of the companys fiscal year, Dower chooses to revalue the equipment to its fair value of $234,000.

4a. Calculate the revaluation of the equipment assuming that the fair value of the equipment at the end of 2021 is $158,000. 4b. Assume that the fair value of the equipment at the end of 2021 is $158,000. Prepare the journal entry to record the revaluation of the equipment.

• Req 4A
• Req 4B

Calculate the revaluation of the equipment assuming that the fair value of the equipment at the end of 2021 is $158,000. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)

	Before revaluation	Conversion factor	After revaluation
Equipment	$216,000	$158,000 / $189,000
Accumulated depreciation		$158,000 / $189,000
Book value		$158,000 / $189,000

• Record the revaluation of the equipment.

Note: Enter debits before credits.

Event	General Journal	Debit	Credit
1