revaluation model

Pumpkin Ltd. is a publicly traded corporation that uses the Revaluation Model with the direct "assetadjustment" method to account for its capital assets. Appraisals are to be obtained every three years (unless market conditions identify material "shifts" in market values). On January 1, 2021, a new warehouse was purchased for $2,000,000. At that time, management estimated the warehouse would have a 25 -year life and a residual value of $225,000. XYZ Ltd. uses straight-line depreciation. On December 31, 2023 (the company's year-end) the warehouse was appraised at $1,800,000. Required: 1. Calculate the net book value of the warehouse on December 31, 2023 prior to recording the revaluation entries. (4 marks) 2. Record the revaluation entries to be made on December 31,2023 using the asset-adjustment method (whic known as the "direct method"). (6 marks)