On 1 July 2016, Frewville Ltd acquired the assets and liabilities of Glenunga Ltd. The assets and liabilities of Glenunga Ltd consisted of:

	Carrying amount				Fair value
Plant A (cost $840000) Plant B (cost $680000) Furniture (cost $160000) Land Liabilities		$620000  362000  120000  200000  (300000)				$600000  350000  100000  260000  (300000)

In exchange for the business of Glenunga Ltd, Frewville Ltd provided the following to Glenunga Ltd:

·  400000 shares in Frewville Ltd, these having a fair value of $2.00 per share

·  Cash of $360000.

The acquisition went ahead as planned. The plant acquired was considered by Frewville Ltd to have a further 10-year life with benefits being received evenly over that period; the furniture had an expected life of 5 years.

During the first year after the acquisition, the management of Frewville Ltd decided to measure, at 30 June 2017, the plant at fair value (both plant assets being in the same class) and the furniture at cost.

At 30 June 2017, Frewville Ltd assessed the fair values of its assets:

·  Plant A was valued at $552000, with an expected remaining useful life of 8 years.

·  Plant B was valued at $320000, with an expected remaining useful life of 8 years.

At 30 June 2017, the furniture’s recoverable amount was assessed to be $70000, with an expected useful life of 4 years.

Required

Prepare the journal entries in the records of Frewville Ltd for the year ending 30 June 2017.