Sky Inc. (Sky) has a fiscal year end of December 31 and applies straight-line depreciation to its PP&E. Sky purchased a building at $4,000,000 on July 1, 2015. Suppose the building is used as a warehouse (for production). It was estimated that the building has a useful life of 20 years at purchase (no residual or salvage value at the end of useful life). Sky uses a revaluation model for its PP&E and re- values all of its PP&E every three years to make sure that the book values of its long-term productive assets are not too far from their market values. On December 31, 2017, the building was estimated to have a fair value of $3,675,000. Also on December 31, 2017, Sky estimated that the building has only a useful life of 15 more years (i.e., the building can be used for 15 years from December 31, 2017). On December 31, 2020, the building was estimated to have a fair value of $2,700,000. REQUIRED: For each component of the journal entries, clearly state whether the entry (dr./cr.) is made to the income statement (I/S), balance sheet (B/S) or statement of other comprehensive income (OCI). For example, Dr. Cash (B/S) $10; Cr. Revenue (I/S) $10. 1. Prepare all journal entries needed for the revaluation on December 31, 2017. 2. Prepare all journal entries needed for the revaluation on December 31, 2020. IUAL T v Edit View Insert Format Tools Table 12pt v Paragraph B >> 0 ***