In the 30 June 2015 annual report of Comicon Ltd, machinery was reported as follows: Machinery (at cost) $500,000 Accumulated depreciation ($150,000) $350,000 The machinery consisted of two machines, Machine A and Machine B. Machine A had cost $300,000 and had a carrying amount of $180,000 at 30 June 2015, and Machine B had cost $200,000 and was carried at $170,000. Both machines are measured using the cost model and depreciated on a straight-line basis over a 10-year period. The residual value of both machines is zero. On 31 December 2015, the directors of Comicon Ltd decided to change the basis of measuring the equipment from the Cost model to the Revaluation model. Machine A was revalued to $180,000 with an expected useful life of 6 years, and Machine B was revalued to $155,000 with an expected useful life of 5 years. At 30 June 2016, both machines were revalued (the "second revaluation"). Machine A was assessed to have a fair value of $163,000 with an expected useful life of 5 years, and Machine B's fair value was $136,500 with an expected useful life of 4 years (Note: use the details for the second revaluation at 30 June 2016 for Homework Question 1). Required: Prepare the journal entries during the period 1 July 2015 to 31 December 2015 (the "first revaluation") and the depreciation entries from 1 January 2016 to 30 June 2016 in relation to the machinery I Record depreciation for the year up to the date of revaluation - 1 July to 31 December 2015 DATE DETAILS DR CR 31/12/2015 Record 6 months depreciation Machine A 31/12/2015 Record 6 months depreciation Machine B Calculate the amount and direction of the first revaluation Machine A - 31 December 2015 - Cost Less: Accumulated Depreciation Machine B-231 December 2015 Cost Less: Accumulated Depreciation Carrying Amount Fair Value Carrying Amount Fair Value Increment Decrement First Revaluation of Machine A - 31 December 2015 First Revaluation of Machine A - 31 December 2015 DATE DETAILS DR CR 31/12/2015 Write Machine A down to carrying amount 31/12/2015 Recognition of revaluation increase from carrying amount to fair value 31/12/2015 I Accumulation of net revaluation gain in equity First Revaluation of Machine B-31 December 2015 DETAILS DR CR DATE 31/12/2015 Write Machine B down to carrying amount 31/12/2015 Recognition of revaluation decrease from carrying amount to fair value Record depreciation for the year up to the date of second revaluation - 1 January to 30 June 2016 DETAILS DR CR DATE 30/06/2016 Record 6 months depreciation Machine A 30/06/2016 Record 6 months depreciation Machine B