At 1 July 2014, Steven Ltd acquired the following non-current assets:

Machine A

Machine B

Machine C

Cost 60,000

Cost 40,000

Cost 100,000

Useful Life 5 years

Useful Life 8 years

Useful Life 5 years

The firm uses the valuation model for all threeassets

At 30 June 2015, the fair values of all assets were assessed. Machine A had a fair value of $65,000, and Machine B a fair value of $30000. The remaining useful lives were assessed to be 4 years for Machine A and 4 years for Machine B. At this time the value of Machine C was unchanged.

At 30 June 2016, Machine C was sold for a consideration of $75,000. On the same date the fair values of Machine A and Machine B were reassessed. Machine A had a fair value of $28,750, and Machine B a fair value of $32,500.

Required:

Prepare the journal entries for Steven Ltd for the years ending 30 June 2015 and 2016. Assume a tax rate of 30%.