Buch Corporation purchased a machine at the beginning of year 1 at a cost of $700,000

The machine is used in the production of product A. Expected useful life of the machine is 20 years with no residual value. The straight-line method of depreciation is used. At the end of 2nd year. The machine is revalued upward at its fair value of $X (X is your last 5 digitals in your student ID multiplied by 10). For example, your student ID is: 17071232, X is $712.320.

Question 1: Calculate the revaluation gain on 31 Dec, Year 2 and prepare appropriate journal

entries.

In year 3, due to adverse economic conditions demand for product A decline significantly. At Dec 31, year 3, the company develops the following estimates related to the machine:

Expected future cash flows: $600,000

Present value of expected future cash flows: $520.000

Selling price: $530.000

Costs of disposal: $20,000

Question 2: Determine whether the machine has been impaired in accordance with AS 36 and

prepare appropriate journal entries on 31 Dec. Year 3.

Note: please give me the specific solution. many thanks