TTT Company purchased a machine some years ago. At the end of the current year, the company revalued the machine to its fair value. The machine has the following characteristics at the end of the current year:

Original cost	$1,250,000
Residual value	$50,000
Estimated useful life (from acquisition date)	10 years
Years of use up to end of current year	4 years
Estimated useful life remaining (after current year-end)	6 years
Fair value at end of current year	$950,000
Depreciation method	Straight-line

Requirements

a.	Calculate the depreciation expense for the years prior to the revaluation.
b.	Calculate the depreciation expense for the years following the revaluation.
c.	Record the journal entry for the revaluation adjustment using the elimination method.
d.	Assuming no other changes in estimates or revaluations, show the following three amounts at the end of the 10 years of the equipment's life: gross carrying value, accumulated depreciation, net carrying value. Do this for the historical cost method as well as for the revaluation method.

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Requirement a. Calculate the depreciation expense for the years prior to the revaluation. Years 1-4 Annual depreciation prior to revaluation Requirement b. Calculate the depreciation expense for the years following the revaluation. Years 5- 10 Annual depreciation following revaluation Requirement c. Record the joumal entry for the revaluation adjustment using the elimination method. (Record debits first, then credits. Explanations are not required.) Date Accounts Debit Credit Requirement d. Assuming no other changes historical cost method as well as for the revaluation method. (Enter a "0" for any zero-balances.) estimates or revaluations, show the following three amounts at the end of the 10 years of the equipment's life: gross carrying value, accumulated depreciation, net carrying value. Do this for the Begin with the historical cost model. Start by entering the amounts for years 1-4, then complete the analysis for years 5-10. Historical Cost Method Gross Accumulated Net carrying Year carrying value depreciation value 1 3 4 6 9 10