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 $240,000. 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 $220,000.

Required: 1.Calculate depreciation for 2021. 2-a. Calculate the revaluation of the equipment. 2-b. Prepare the journal entry to record the revaluation of the equipment. 3.Calculate depreciation for 2022.

• Req 1
• Req 2A
• Req 2B
• Req 3

Prepare the journal entry to record the revaluation of the equipment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)

No	Event	General Journal	Debit	Credit
1	1	Equipment
		Accumulated depreciation

• Req 3

• Calculate depreciation for 2022. (Round your denominator answer to 2 decimal places.)

  Straight-Line Depreciation
  	Choose Numerator:	/	Choose Denominator:	=	Annual Depreciation Expense
  Formula	Cost minus residual	/	Estimated Useful Life (years)	=	Depreciation Expense
  Amounts		/		=	0

• Req 4A
• Req 4B

• Calculate the revaluation of the equipment assuming that the fair value of the equipment at the end of 2021 is $195,000. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)

  	Before Revaluation	Conversion Factor	After Revaluation
  Equipment		195000/210000
  Accumulated depreciation		195000/210000
  Book value		195000/210000

• Req 4B

• Assume that the fair value of the equipment at the end of 2021 is $195,000. Prepare the journal entry to record the revaluation of the equipment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to nearest whole number.)

  Journal entry worksheet

• Record the revaluation of the equipment.

• Note: Enter debits before credits.

  Event	General Journal	Debit	Credit
  1