Synthetic Fuels Corporation prepares its financial statements according to IFRS. On June 30, 2019, the company purchased equipment for $360,000. The equipment is expected to have a six-year useful life with no residual value. Synthetic uses the straight-line depreciation method for all depreciable assets and chooses to revalue the equipment. Fair value of the equipment was $346,500 at 12/31/2019 and $255,150 at 12/31/2020, respectively.

Required:

1.Calculate the depreciation for 2019 and prepare the journal entry to record it.

2.Prepare the journal entry to record the revaluation of the equipment at 12/31/2019 (Show supporting calculations).

3.Calculate the depreciation for 2020 and prepare the journal entry to record it.

4.Prepare the journal entry to record the revaluation of the equipment at 12/31/2020 (Show supporting calculations).