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Question - On 1 July 2020, GTW Ltd purchased a machinery at $120,000. GTW Ltd adopts the revaluation model for the machinery. The machinery is depreciated on a straight-line basis over a 6-year period with nil residual value.
On 30 June 2021, the fair value of the machinery is $90,000 and the recoverable amount is $95,000. The machinery has 5 years remaining useful life.
On 30 June 2022, the recoverable amount of the machinery is assessed to be $83,000.
Required - List all necessary journal entries (including depreciations) associated with the revaluation of the machinery for the year ended 30 June 2022, in accordance with AASB 116 Property, Plant and Equipment.
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