Brambie Manufacturers Inc., a publicly listed company, has two machines that are accounted for under the revaluation model. Technology in Brambies industry is fast-changing, causing the fair value of each machine to change significantly approximately every two years. The following information is available:

		Machine #1			Machine #2
Acquisition date		Jan. 2, 2014			June 30, 2013
Original cost		$420,000			$588,000
Original estimate of useful life		8 years			12 years
Original estimate of residual value		0			0
Pattern of depreciation		Straight-line			Straight-line
Fair value at Dec. 31, 2015		295,000			479,500
Balance in Machinery account after proportionate method revaluation on Dec. 31, 2015		393,333			605,685
Balance in Accumulated Depreciation account after proportionate method revaluation on Dec. 31, 2015		98,333			126,185
Cumulative balance in (Revaluation Gain or Loss/ Revaluation Surplus (OCI) at Jan. 1, 2017		(20,000	)		14,000
Fair value at Dec. 31, 2017		243,000			300,500

Both machines were last revalued on December 31, 2015. Brambie has a December 31 year end.

Prepare the journal entries required for 2017, using the asset adjustment method.

Debit Credit No. Account Titles and Explanation Machine #1 1. Depreciation Expense 52500 XE Accumulated Depreciation - Machinery 52500 (To record depreciation) 2. Machinery 19500 Revaluation Surplus (OCI) 19500 (To adjust depreciation on machinery) 3. Machinery T 31206 Accumulated Depreciation - Machinery 11702 Revaluation Surplus (OCI) 19504 (To adjust machinery) (To adjust machinery) Machine #2 1. Accumulated Depreciation - Machinery 49000 Machinery 49000 (To record depreciation) Machinery 140500 X Revaluation Surplus (OCI) 140500 (To adjust depreciation on machinery) 3. Machinery Accumulated Depreciation - Machinery 46834 T Revaluation Surplus (OCI) 140503 (To adjust machinery) Debit Credit No. Account Titles and Explanation Machine #1 1. Depreciation Expense 52500 XE Accumulated Depreciation - Machinery 52500 (To record depreciation) 2. Machinery 19500 Revaluation Surplus (OCI) 19500 (To adjust depreciation on machinery) 3. Machinery T 31206 Accumulated Depreciation - Machinery 11702 Revaluation Surplus (OCI) 19504 (To adjust machinery) (To adjust machinery) Machine #2 1. Accumulated Depreciation - Machinery 49000 Machinery 49000 (To record depreciation) Machinery 140500 X Revaluation Surplus (OCI) 140500 (To adjust depreciation on machinery) 3. Machinery Accumulated Depreciation - Machinery 46834 T Revaluation Surplus (OCI) 140503 (To adjust machinery)