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

Machine #1. Machine #2 Acquisition dateJan. 2, 2017June 30, 2016Original cost$440,000$540,000Original estimate of useful life8 years12 yearsOriginal estimate of residual value00Pattern of depreciationStraight-lineStraight-lineFair value at Dec. 31, 2018310,000440,000Balance in Machinery account after proportionate method revaluation on Dec. 31, 2018413,333555,789Balance in Accumulated Depreciation account after proportionate method revaluation on Dec. 31, 2018103,333115,789Cumulative balance in (Revaluation Gain or Loss)/ Revaluation Surplus (AOCI) at Jan. 1, 2020(20,000)12,500Fair value at Dec. 31, 2020230,000328,000

Both machines were last revalued on December 31, 2018. Camco has a December 31 year end.

Instructions

a. Prepare the journal entries required for 2020, using the asset adjustment method.

b. Prepare the journal entries required for 2020, using the proportionate method. Do not round intermediate calculations but round final amounts to the nearest dollar.

c. Prepare a continuity schedule showing for each machine the amounts recorded to the Machine account and to the Accumulated Depreciation account, as well as indicating the carrying amount for each fiscal year from date of purchase to December 31, 2020, using (1) the asset adjustment method and (2) the proportionate method. Show the carrying amount under each method at the end of each fiscal year.