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On 1 January 2020, BNB purchased a new equipment at a cost of RM200,000 to replace an old equipment which was purchased when the company was firstly established. The book value of the old equipment on this date was RM56,000. The company chose to dispose the old equipment and net-off the cost of the new equipment against the one-off subsidy of RM50,000 awarded by the government.
Problem 1: Prepare the journal entries to record the replacement and depreciation of the equipment on 1 January 2020
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