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Question - The carrying amount of Machinery and Building of Roxy Ltd after charging depreciation on 30 June 2020 are as follows: Machinery $ 100 000 ($150 000 less accumulated depreciation $50 000), and Building $40 000 ($60 000 less accumulated depreciation $20 000). Roxy Ltd has employed fair value for the valuation of these two non-current assets. This has resulted in the recognition in the previous year of an asset revaluation surplus for the Machinery of $7 000. Roxy Ltd hired an independent valuer on 30 June 2020 and the valuer assessed the fair value of the Machinery as $80 000 and Building as $45 000. Prepare the necessary journal entries to revalue the Machinery and the Building as at 30 June 2020.
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