Reference no: EM132643450

On 1 July 2017, Norwich Ltd paid $80,000 cash to acquire a machine.

On this date it was estimated that the machine had a useful life of ten years and a residual value of $10,000. In accordance with AASB 116 Property, Plant and Equipment, Norwich Ltd uses the revaluation model as its accounting policy to measure items of property, plant and equipment and the straight-line method of depreciation. Norwich Ltd has a 30 June reporting date.

An independent valuer provided the following fair values for the machine:

Reporting date               Fair value

30 June 2018                  $91,000
30 June 2019                   66,000
30 June 2020                    52,000

On 31 December 2020, the machine was sold for $50,000 cash.

Required

Question 1: Prepare the journal entries to account for the events and transactions in relation to the machine between 1 July 2017 and 31 December 2020.