Erase Ltd adopts the revaluation model for measuring equipment.

In the previous years revaluation (30 June 2021), equipment A was decreased by $5,000 to bring it to a fair value of $80,000. Equipment A had a remaining useful life of 5 years and a residual value of $2,000 after this revaluation.

On 30 June 2022, and prior to recording depreciation for the year, Erase Ltd obtained a fair value for equipment A at $75,000.

The company uses straight-line depreciation, the reporting period ends 30 June, and the tax rate is 30%.

Required:

Prepare all necessary journal entries for equipment A on 30 June 2022. Show all calculations.