Entity A leases construction machinery to local building sub-contractors for many years.

On1 January 2014, Entity A purchased20units of construction road roller.The economic life of the road roller is5 years.The invoice price was$1,800,000per unit.They were all delivered to Entity A on1 April 2014.Installation expense of$50,000was incurred for installing20units of road roller on1 April 2014.The invoice price and the installation expense were settled on5 May 2014and1 April 2014respectively.The depreciation policy for the construction road roller is based on the straight-line method with a residual value of$1,500each.

On31 March 2016, the construction market has suddenly turned down due to several new government legislation on the construction industry.Therefore, Entity A estimated that each construction road roller would be able to generate$400,000cash per annum in the remaining years and the scrap value of these 20 units of construction road roller was totally$30,000.The discounting rate was applied as15.00%per annum.Entity A also estimated that if they were sold to the second-hand market, the value of each construction road roller was$990,000.A disposal cost of$120,000would be incurred for selling them.

On31 March 2017,Entity A confirmed that further impairment adjustments were not needed after the impairment review.

On31 March 2018,the construction market dramatically turned up due to the recent economic boom.Entity A estimated the value in use of a road roller would be$370,000.However, these road rollers could not be sold at that time due to a lack of a buyer.

On31 March 2019, the scrap value of the road roller was sold as$1,250each.

REQUIRED:

According to relevant accounting standards, provide all necessary journal entries of EntityA from1 January 2014 to 31March 2019.

ACCOUNTS FOR INPUT:

| Road roller | Plant | Machine | Motor van | Land | Building | Inventory |Intangible assets|Bank |

| Payable | Receivable| Retained earnings|Other income |Other expense |Interest expense | Interest revenue |

|Depreciation |Accum. depreciation |Impairment loss |Reversal of impairment loss | Loss on disposal |Gain on disposal |

|Restoration liability |Goodwill |Revaluation surplus | Revaluation deficit | No entry |

ANSWERS:

Journal Entries: