Tip Top Co. is a manufacturer of escalators and elevators. The following provides information on two types of property, plant, and equipment as at the end of fiscal year 2020. (Click the icon to view the data.) Required Requirement a. Using the information in the problem statement, compute the depreciation that would be recorded on each of the two assets for 2021. Do not use the information in any of the subsequent requirements of this problem. Assembly-line equipment 2021 Depreciation Requirement b. At the beginning of fiscal year 2021, Tip Top conducted appraisals of these assets. The appraisals indicate that the factory building is worth $16.3 million while the equipment is worth $4,320,000. While the company has conducted regular appraisals in the past, these are the first appraisals to show significant deviations of fair value from carrying value. In other words, there have been no revaluation surpluses or losses on these assets prior to 2021. For the revaluation on the equipment, the company has chosen to use the proportional method. For the building, the company will use the elimination method. Record the journal entries to revalue these two assets at the beginning of 2021. Begin by recording the journal entry for the revaluation adjustment on the equipment using the proportional method. (Record debits first, then credits. Explanations are not Accounts Debit Credit Date 2021 Factory building Now record the journal entry for the revaluation adjustment on the building using the elimination method. (Record debits first, then credits. Explanations are not required.) Accounts Debit Date 2021 Credit Requirement c. Using the amounts after revaluation, compute the depreciation that would be recorded on each of the two assets for 2021. Assembly-line Factory Data Cost Estimated residual value Estimated useful life on purchase date Remaining useful life at the end of fiscal 2020 Depreciation policy Accumulated depreciation at end of 2020 Print Assembly-line equipment $7,200,000 nil 12 years 8 years Straight-line $2,400,000 Done Factory building $23,450,000 $700,000 35 years 20 years Straight-line $9,750,000 X