Able Ltd purchased machinery on 1 November 2016 for $160 000. The estimated useful life of the machinery is 8 years, with an estimated residual of $10 000. The entity’s reporting period ends on 30 June, and it uses the straight-line method of depreciation. On 1 July 2017, the value in use was estimated to be $90 000 and the net selling price was $98 750. 

Required

Prepare the journal entries in relation to the equipment from the date of acquisition.