Copper Sdn. Bhd. has land, buildings and machineries as its Plant, Property and Equipment as at 31 December 2016. The company uses the straight-line depreciation method for all depreciable assets (unless otherwise stated). The company adopts the revaluation model for land and buildings and the cost model for motor vehicle and machineries. It is the policy of the company to revalue its lands and buildings annually. The following information is given in year 2017:

1. Copper Sdn. Bhd. has 2 machines - Coal and Diamond. The followings are details on the machines:

	Coal	Diamond
Acquisition date	1 Jan 2013	1 Jan 2014
Cost Price (RM)	200,000	400,000
Residual Value (RM)	0	0
Useful Life	5 years	8 years

2. After a consultation meeting with a technical group, the useful lives of Coal and depreciation method for Diamond were revised on 1 January 2017:

	Coal	Diamond
Revised Useful Life	8 years (note 3)	No revision
Revised depreciation method	No revision	Declining balance-with the rate of 25% (note 4)

3. The company purchased a radiator and attached it to Coal. The radiator costs the company RM50,000. As a result, Coals performance increased and thus, the useful life was revised from 5 to 8 years.

4. The meeting agrees to change the depreciation method of Diamond from straight line to declining balance method with a rate of 25% every year.

Date	Transactions
31 March	Diamond was traded in with a new machine, Gold. The quoted price (i.e. market value) of Gold was RM250,000. Gold has a residual value of RM50,000 and useful life of 10 years. Cooper Sdn. Bhd. paid RM150,000 cash during the transaction.
26 Sept	The company paid RM12,000 to paint the exterior of its building and another RM14,000 to furnish the interior of its building. The painting and furnishing was done to improve the corporate image of the company. Payments were by loan from AGRbank.
31 Dec	The company revalued its land to its fair value of RM100,000. The land was bought on 1 January 2016 at a cost of RM80,000. The useful life of the land is expected to be indefinite. It was revalued at RM75,000 on 31 December 2016 last year. The company chooses to revalue its buildings to its fair value of RM150,000. The buildings were bought on 1 July 2016 at a cost of RM150,000. The useful life of the buildings is expected to be 20 years, with no residual value. Upon revaluation, the accumulated depreciation is eliminated against the gross carrying value of the buildings.

Required:

1. Determine the carrying amount of machineries (Coal and Diamond) owned by Cooper Sdn. Bhd. as at 1 Jan 2017.
2. Prepare journal entries to record the above transactions, including for the depreciation expenses on 31 December 2017 (if applicable)
3. Provide ONE (1) reason why accounting for depreciation is necessary