Reference no: EM132473456

In the 30 June 2009 annual report of Helios Ltd. the equipment was reported as follows:

Equipment (at cost)                              $500 000
Accumulated depreciation                        150 000
                                                            350 000

Point 1: The equipment consisted of two machines. Machine A and Machine B. Machine A had cost $300 000 and had a carrying amount of S180 000 at 30 June 2009. and Machine B had cost $200 000 and was carried at $170 000. Both machines are measured using the cost model. and depreciated on a straight-line basis over a 10-year period.

Point 2: On 31 December 2009. the directors of Helios Ltd decided to change the basis of measuring the equipment from the cost model to the revaluation model. Machine A was revalued to $180 000 with an expected useful life of 6 years. and Machine B was revalued to $155 000 with an expected useful life of 5 years.

Point 3: At 30 June 2010, Machine A was assessed to have a fair value of $163 000 with an expected useful life of 5 years. and Machine B's fair value was $136 500 with an expected useful life of 4 years.
The tax rate is 30%.

Required:

Question 1: Prepare the journal entries during the period 1 July 2009 to 30 June 2010 in relation to the equipment.