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Question - An item of depreciable machinery is acquired on 1 July 2016 for $280 000. It is expected to have a useful life of 10 years and a zero-residual value (straight-line). On 1 July 2020, it is decided to revalue the asset to its fair value of $150 000.
Required - Provide journal entries to account for the revaluation.
What is the depreciation expense for the current year, assuming the straight-line method is used? What is the depreciation expense for the current year?
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