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Dower Corporation prepares its financial statements according to IFRS. On March 31,2016 , the company...

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Accounting

Dower Corporation prepares its financial statements according to IFRS. On March 31,2016 , the company purchased equipment for 240,000. The equipment is expected to have a six year useful life with no residual value. Dower uses the straight line depreciation method for all equipment. On December 31,2016, the end of the company's fiscal year, Dower chooses to revalue the equipment to it's fair value of 220,000.

Required

1. Calculate the depreciation for 2016.

2. Prepare the journal entry to record the revaluations of the equipment. Round calculations to the nearest thousand.

3. Calulate depreciation for 2017.

4. Repeat requirement 2 assuming that the fair value of the equipment at the end of 2016 is 195,000$

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