During 2021, Convent Ltd purchased a machine, machine A, for $400,000 and spare parts for $30,000. These spare parts can be used on any machine, not only machine A. In addition, a standby machine, which is reserved for use only during machine A`s downtime was purchased for $200,000 (assume that the standby machine does not need a major installation in order to become operable). During 2021, spare parts to the value of $20,000 were used to repair various machines, including machine A.

REQUIRED

Prepare journal entries, with appropriate explanation, showing how the spare parts, machine A and the standby machine will be accounted for in the financial statements of Convent Ltd