Sorocaba Company is located in a highly inflationary country and in accordance with IAS 29 prepares financial statements on a general purchasing power (inflation-adjusted) basis through reference to changes in the general price index (GPI). The company had the following transactions involving machinery and equipment in its first two years of operations:

Required:
Determine the amount that would be reported as machinery and equipment in accordance with IAS 29 on the December 31, Year 1, and December 31, Year 2, balance sheets.