Exercise 11.11 REVALUATION OF ASSETS ** On 1 July 2012, Themar Ltd acquired two assets within the same class of plant and equipment. Information on these assets is as follows: Cost Expected useful life Machine A 100 000 5 years Machine B 60 000 3 years The machines are expected to generate benefits evenly over their useful lives. The class of plant and equipment is measured using fair value. At 30 June 2013, information about the assets is as follows: Fair value Expected useful life Machine A 84 000 4 years Machine B 38 000 2 years On 1 January 2014, Machine B was sold for 29 000 cash. On the same day, Themar Ltd acquired Machine C for 80 000 cash. Machine C has an expected useful life of 4 years. Themar Ltd also made a bonus issue of 10 000 shares at 1 per share, using 8000 from the general reserve and 2000 from the asset revaluation surplus created as a result of measuring Machine A at fair value. At 30 June 2014, information on the machines is as follows: Fair value Expected useful life Machine A 61 000 3 years Machine C 68 500 3.5 years Fair value Expected useful life Machine A 61 000 3 years Machine C 68 500 3-5 years The income tax rate is 30%. Required Prepare the journal entries in the records of Themar Ltd to record the described events over the period 1 July 2012 to 30 June 2014, assuming the ends of the reporting periods are 30 June 2013 and 30 June 2014