Houston Company acquired equipment on January 2, Year 1 at a cost of $15M. The equipment has a five-year life, no residual value, and is depreciated on a straight-line basis. On January 2, Year 3, Houston company determines the fair value of the assets (net of any accumulated depreciation) to be $21M.
(Required)
Determine the impact of equipment on Houston's income in Years 1-5 using (1) IFRS, assuming that revaluation model is used for measurement subsequent to initial recognition, and (2) U.S. GAAP.