At 1 July 2022, Modem Ltd acquired the following non-current assets:

Equipment $400000

Vehicles 320000

They are in different classes of non-current assets and are to be measured at fair value. The expected useful lives of vehicles and equipment are 5 years and 10 years, respectively.

At 30 June 2021, the fair values of both assets were assessed. The equipment had a fair value of $328 000, and the vehicles, $280000. The remaining useful lives were assessed to be 8 years for equipment and 7 years for vehicles.

At 30 June 2022, the fair value of equipment was assessed to be $327000 and the fair value of vehicles was $220000.

Required

Prepare the journal entries for Modem Ltd for the years ending 30 June 2021 and 2022.

REQUIRED journal entry explanation after each entry and working notes.