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Question - An item of depreciable machinery is acquired on 1 July 2015 for $280 000. It is expected to have a useful life of 10 years and a zero-residual value (straight-line). On 1 July 2019, it is decided to revalue the asset to its fair value of $240 000.
Required -
A. Provide journal entries to account for the revaluation.
B. In your own words explain and discuss when do you think should a revaluation increment be included as part of profit or loss?
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