Equipment (at cost)

Accumulated Depreciation

$

500000

(150000)

350000

The equipment consisted of two machines, Machine A and Machine B. Machine A had cost $300000 and had a carrying amount of $180000 at 30 June 2016, and Machine B had cost $200000 and was carried at $170000. Both machines are measured using the cost model, and depreciated on a straight-line basis over a 10-year period.

On 31 December 2016, the directors of Payback Ltd decided to change the basis of measuring the equipment from the cost model to the revaluation model. Machine A was revalued to $180000 with an expected useful life of 6 years, and Machine B was revalued to $155000 with an expected useful life of 5 years.

At 30 June 2017, Machine A was assessed to have a fair value of $163000 with an expected useful life of 5 years, and Machine B's fair value was $136500 with an expected useful life of 4 years.

Required: Prepare the journal entries during the period 1 July 2016 to 30 June 2017 in relation to