G. King, Inc. purchases equipment for $1,000,000 on January 2, 2016. The equipment has a useful life offive years, is depreciated using the straight-line method of depreciation, and its residual value is zero.King chooses to revalue its equipment to fair value over the life of equipment. King employs anindependent appraiser, who determines that the fair value of equipment at December 31, 2016, is$950,000. Assuming no change in the useful life of the equipment, King determines through appraisalthat the equipment now has a fair value of $550,000 at December 31, 2017. Instructions (12%) Prepare the entries relating the revaluation for 2017 except for depreciation expense.