Exercise 14.6Overhauls, repairs and revision of depreciation (GST Applies) On 2 January 2019, McGrath Ltd purchased a machine for $39 600 (GST Inclusive) with a useful life of 5 years and a residual value of S6000. In order to keep the machine running properly, the company has performed regular maintenance and repairs each year since its acquisition. In the fourth year (2022), ordinary repairs amounted to $990 (GST Inclusive) On 3 January 2023, McGrath Ltd decided to completely overhaul the machine's major operating parts at a cost of $10560 (GST Inclusive), after which the machine is expected to have a useful life of 4 more years and a revised residual value of $4000. McGrath Ltd uses the straight-line depreciation method. The carrying amount of the parts replaced was considered to be $400. Required (a) Prepare general journal entries to record: i. the purchase of the machine on 2 January 2019 ii. the day-to-day repairs on the machine in 2022 iii. the overhaul of the machine on 3 January 2023 iv. depreciation expense on the machine on 31 December 2023. [ As per the textbook, students may also want to attempt this Question where there has been No GST added to each transaction. ]