Grace Ltd imported a grinding machine from Japan on 1 July 2019 at a cost of $550,000. The machine had an expected useful life of 4 years, and the company adopts the straight-line basis of depreciation. Grace Ltd measures this asset at fair value. Movement in fair values were as follows:

Year	Fair value	Remaining useful life
30 June 2020	$600,000	3 years
30 June 2021	$200,000	2 years

REQUIRED:

1. Provide journal entries necessary to account for this machine for the financial year ending 30 June 2020 in accordance with AASB116 Property, Plant and Equipment. Show all workings supporting your answer. (4.5 marks)

(b) Provide journal entries necessary to account for this machine for the financial year

ending 30 June 2021 in accordance with AASB116 Property, Plant and Equipment.

Show all workings supporting your answer. (4.5 marks)