You Purchased a new production machine for 5million on January 1,2018. Its useful life was estimated to be 10 years, and the salvage value was estimated at 100,000. Your firm uses straight line depreciation.

On January 1,2019 the machine has a fair value of 6million. Using the revaluation method and the cost model, what would be the effect on your financial statements.

On January 1,2020 the machine has a fair value of 4million. Using the revaluation method and cost model, what would be teh effect on your financial statements.

Its all one question please explain! Thank you!