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Question - Mel Ltd acquires some machinery at the cost of $200 000 on 1 July 2020. On 30 June 2021, the machinery, which has an accumulated depreciation balance of $50 000, is assessed as having a fair value equal to $120 000. Mel Ltd measures machinery at fair value.
(a) Provide the journal entries to reflect the revaluation decrement.
(b) If a reporting entity elects to use either cost or fair value as the basis for measuring its property, plant and equipment, can it elect to switch to the other method at a later time?
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