Revaluation, depreciation and impairment

GP LLC owns and controls few land and buildings, plants and equipment. OnApril 1, 2010, the entity bought land and necessary buildings for 100 million USD all together. The cost of individual assets had 2:3 ratio. The plants with all necessary equipment were bought for 80 million USD on the same date. At that time, the industry professional reviewed land and buildings, and plant and equipment, estimated that they have 30 and 50 years, respectively. In order to be consistent with economic life of assets, it was decided to use straight-line method to depreciate all available assets. The entity assumed that there would be no scrap value at that time. However, due to financial distress between 2012 and 2013, the management decided to change their estimates regarding depreciation policy, and they considered to apply revaluation model in order to be consistent with market. As of January 1, 2014, they had to downgrade the value all available assets by 25% of their original cost, and because chief economist expected an economic recovery in upcoming years, they estimated that the residual value for both land and buildings and plant and equipment would be 20% of the revalued amount once the impairment was recorded. The useful lives of assets remained unchanged. In September 2017, Hurricane Irma 3rd category hit several states including Florida, where the company sites are located along the east coast. Due to severe damages to the site, it was difficult to price the damage, hence the management decided to review the assets at the beginning of next accounting year. The management reviewed the useful life and estimated the buildings and plant and equipment to have another 10 years left to operate at full potential, after which will be disposed at pre-specified price.

Required: You need to prepare a summary along with journal entries for key changes, pointing out the following points, for the year-endDecember 31, 2018:

Annual depreciation for individual assets, and how they have been updated by the management

Impairment loss or revaluation surplus of assets in relevant years

Updated residual values, useful lives and annual depreciation charges in relevant years.