Synthetic Fuels Corporation prepares its financial statements according to IFRS. On June 30, 2021, the company purchased equipment for $350,000. The equipment is expected to have a seven-year useful life with no residual value. Synthetic uses the straight-line depreciation method for all depreciable assets. On December 31, 2021, the end of the company's fiscal year, Synthetic chooses to revalue the machinery to its fair value of $299,000. Required: 1. Calculate depreciation for 2021. 2. Prepare the journal entry at the end of 2021 to record the revaluation of the equipment. 3. Calculate depreciation for 2022. 4. Repeat requirement 2, assuming that the fair value of the equipment at the end of 2021 is $338,000. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the journal entry at the end of 2021 to record the revaluation of the equipment. (Do not round your intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Transaction General Journal Debit Credit 1 1 Revaluation expense 26,000 26,000 No Sales revenue Synthetic Fuels Corporation prepares its financial statements according to IFRS. On June 30, 2021, the company purchased equipment for $350,000. The equipment is expected to have a seven-year useful life with no residual value. Synthetic uses the straight-line depreciation method for all depreciable assets. On December 31, 2021, the end of the company's fiscal year, Synthetic chooses to revalue the machinery to its fair value of $299,000. Required: 1. Calculate depreciation for 2021. 2. Prepare the journal entry at the end of 2021 to record the revaluation of the equipment 3. Calculate depreciation for 2022. 4. Repeat requirement 2, assuming that the fair value of the equipment at the end of 2021 is $338,000. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate depreciation for 2022. Depreciation for 2022 $ 49,833 Synthetic Fuels Corporation prepares its financial statements according to IFRS. On June 30, 2021, the company purchased equipment for $350,000. The equipment is expected to have a seven-year useful life with no residual value. Synthetic uses the straight-line depreciation method for all depreciable assets. On December 31, 2021, the end of the company's fiscal year, Synthetic chooses to revalue the machinery to its fair value of $299,000. Required: 1. Calculate depreciation for 2021. 2. Prepare the journal entry at the end of 2021 to record the revaluation of the equipment. 3. Calculate depreciation for 2022. 4. Repeat requirement 2, assuming that the fair value of the equipment at the end of 2021 is $338,000. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the journal entry at the end of 2021 to record the revaluation of the equipment. Assuming that the fair value of the equipment at the end of 2021 is $338,000. (Do not round your intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Debit Credit Transaction 1 1 General Journal Equipment Revaluation surplus-OCI 13,000 13,000
