ABC Corporation (ABC) is a public company engaged in manufacturing of wooden and steel furniture. All machines and owner occupied buildings are recorded under cost model. Buildings rented out are classified as investment properties and are recorded under fair value model. Special equipment are recorded under revaluation model. All owner occupied buildings are depreciated using straight line method.

ABC has policy of recording full year depreciation in the year of acquisition and no depreciation in the year of disposition. In use value for all the assets is assumed to be equal to fair value, and cost to sell for any asset is assumed to be NIL. Government grants are recorded under deferral method.

Machine #1: It was purchased 2013 for $2,100,000. It has residual value of $150,000 and useful life 8 years. It is exchanged for similar machine #8. Fair value of machine #8 is $530,750 with useful life of 4 years and residual value of $130,750. Both machines exchanged are equally profitable. Both machines are depreciated under straight line method.

Machine #2: It was purchased in 2017 for $450,000 with a useful life of 5 years and estimated residual value of 99,000. It is depreciated using double declining balance. As at December 31, 2019, it has fair value of $100,000.

Machine #3: It was purchased on January 1, 2014 for $1,500,000. It initially had useful life of 10 years and estimated residual value of $200,000. It is depreciated using straight line method. In 2019, due to technological changes, its total useful life is revised to 8 year and revised residual value is $100,000. As at December 31, 2019, it has a fair value of $900,000

Machine #4: It was purchased in 2018 for $750,000, but total amount was expensed in 2018. It has total production capacity of 300,000 unit over its useful life and residual value of NIL. 20,000 units were produced in 2018 and 50,000 units were produced in 2019. As at December 31, 2019 it has a fair value of $675,000. It is depreciated using units of production method.

Machine #5: It was purchased on January 1, 2011 for $1,500,000 with useful life of 15 years and residual value of NIL. Due to technological changes, as at December 31, 2018, an impairment loss of $200,000 was recognized. Total useful life and residual value is still 15 years and NIL respectively. As at December 31, 2019, fair value of machine #5 is $700,000. It is depreciated using straight line method.

Machine #6: ABC donated fully depreciated machine #7 to a charity in 2019. Machine was acquired in 2001 for $100,000 and residual value of $20,000. Fair value of machine on the date of donation was $15,000.

Machine #7: It was purchased in 2017 for 900,000 with useful life of 6 years and NIL residual value. It is depreciated on declining balance method. At December 31, 219, it has fair value of 350,000

Special Equipment: It was purchased on January 1, 2014 for $1,200,000 and useful life of 12 years and residual value of NIL. Special equipment is revalued every third year under asset adjustment method, and is depreciated under straight line method Its fair value at the end of each fiscal year is as follows:

2014: $970,000 2015: 960,000 2016: 950,000 2017: 990,000 2018: 500,000 2019: 575,000

Land #1: On land #1, head office building and manufacturing facility of ABC is constructed. It was purchased for $1,000,000 in 2018 and its fair values are as follows: Dec 31, 2018: $1,300,000 Dec31,2019: 1,400,000

Land #2:On land #2, an rental apartment building is constructed. It was purchased for 700,000 in 2016 and its fair values are as follows: Dec 31, 2017: $650,000 Dec31,2018: 740,000

Dec31,2019: 690,000

Land #3: it is acquired in 2019, carrying value of $355,000 included: Purchase of Land with an old building = $350,000 Plus Lawyer Fee = $10,000 Plus Brokers Commission = $10,000

Demolition cost net of proceeds for salvage material of $15,000 is expensed. Construction of warehouse on this land will began in 2020.

Building #1:It is located on Land #1 and is used as Head Office of ABC. It is expected to complete in mid of 2020. Its carrying value at December 31, 2019 is $1,700,000. Once completed, it is expected to have a useful life of 17 years and NIL residual value. Fair value of building as at December 31, 2019 is $1,950,000.

Building #2: It is constructed on Land #1. This building is used by ABC for manufacturing wooden and steel furniture. It is completed with the cost of $2,500,000 in 2019. It has useful life of 25 years and residual value of NIL. ABC received government grant of $1,000,000 for this building. As at December 31, 2019, fair value of building is $2,450,000

Building #3: It is constructed on Land #2. It was completed and 100% rented out in 2016. Its construction cost in 2016 was $1,300,000. Its useful life is 25 years and has residual value of NIL. Its fair values are as follows: Dec 31, 2017: $1,500,000

Dec31,2018: 1,600,000

Dec31,2019: 1,300,000

On January 1, 2016, ABC purchased a patent for $700,000 with useful life of 10 years and estimated residual value of NIL. On January 1, 2019, ABC incurred a cost of $80,000 for the successful defence of patent in court of law. Patent is depreciated using straight line method.

Required: Prepare all necessary journal entries, correcting entries (if any) and adjusting journal entries for the fiscal year ending December 31, 2019