On 1 January 2022, Leibhardt Ltd acquired two identical pieces of equipment for a total cost of \($540\) 000. It was estimated that each item would have a useful life of 8 years and a residual value of \($40\) 000 each. The company uses the straight-line method of depreciation and its end of reporting period is 30 June.

On 1 July 2025, the company changed its accounting policy and revalued each item of equipment upwards by a total of \($60\) 000, based on an independent valuer’s report, to fair value. There was no need to revise useful lives or residual amounts. On 31 December 2026, one of the items of equipment was sold for \($120\) 000 cash.

Required

(a) Prepare entries (in general journal format) in relation to the equipment from acquisition date to 31 December 2026.