Dower Corporation prepares its financial statements according to IFRS. On March 31, 2016, the company purchased equipment for $200,000. The equipment is expected to have a five-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 its fair value of $221,000.

Required:

1. Calculate depreciation for 2016.

2-a. Calculate the revaluation of the equipment.

2-b. Prepare the journal entry to record the revaluation of the equipment.

3. Calculate depreciation for 2017.

4-a. Calculate the revaluation of the equipment assuming that the fair value of the equipment at the end of 2016 is $160,000.

4-b. Assume that the fair value of the equipment at the end of 2016 is $160,000. Prepare the journal entry to record the revaluation of the equipment.