Company A acquired the machinery at 1,000,000 on January 1, 20x1. The machine has a useful life of 10 years and no residual value. The depreciation method is a straight-line method, and the company is applying the revaluation model.

(1) At the end of 20x1 the fair value is 1,080,000;

(2) At the end of 20x2, an impairment loss is recognised because there are indications that the asset is impaired, and the fair value and recoverable amount at the end of each period are as follows: End of 20x2 and end of 20x3 Fair value 720,000 750,000 recoverable value 600,000 682,500

(3) The accounting for revaluation shall be done by removing accumulated depreciation and the revaluation surplus shall be replaced with retained earnings when the asset is derecognised.

(Q1) Calculate the revaluation surplus at the end of 20x1. (20 points)

(Q2) Calculate the effect on profit or loss in the statement of comprehensive income at the end of 20x2. (40 points)

(Q3) Calculate the effect on profit or loss in the statement of comprehensive income at the end of 20x3. (40 points)

Please add extra extra explanations and processes