Keiso Manufacturers Inc., a publicly listed company, has two machines that are accounted for under the revaluation model. Technology in Keisos industry is fast-changing, causing the fair value of each machine to change significantly approximately every two years. The following information is available:

Both machines were last revalued on December 31, 2015. Keiso has a December 31 year end.

Prepare the journal entries required for 2017, using the asset adjustment method.

Here are the sample list of account for references:

Accounts Payable Accounts Receivable Accumulated Depreciation - Buildings Accumulated Depreciation - Equipment Accumulated Depreciation - Leasehold Improvements Accumulated Depreciation - Machinery Accumulated Depreciation - Trucks Advertising Expense Asset Retirement Obligation Buildings Cash Common Shares Contributed Surplus Cost of Goods Sold Deferred Revenue - Government Grants Depreciation Expense Donation Revenue Equipment Finance Expense Finance Revenue Gain in Value of Investment Property Gain on Disposal of Building Gain on Disposal of Equipment Gain on Disposal of Machinery Gain on Disposal of Truck Gain on Sale of Land GST Payable GST Receivable Interest Expense Interest Income Interest Payable Interest Receivable Inventory Investment Property Land Land Improvements Loss in Value of Investment Property Loss on Disposal of Building Loss on Disposal of Equipment Loss on Disposal of Land Loss on Disposal of Machinery Loss on Disposal of Truck Machinery Maintenance and Repairs Expense Mineral Resources Mortgage Payable No Entry Notes Payable Notes Receivable Office Expense Owner's Drawings Prepaid Expenses Prepaid Insurance Profit on Construction Purchase Discounts Purchase Returns and Allowances Rent Expense Revaluation Gain or Loss Revaluation Surplus (OCI) Revenue - Government Grants Salaries and Wages Expense Salaries and Wages Payable Sales Revenue Service Revenue Supplies Supplies Expense Tenant Deposits Liability Trucks

Machine #1 Jan. 2, 2014 $472,000 8 years Machine #2 June 30, 2013 $528,000 12 years Acquisition date Original cost Original estimate of useful life Original estimate of residual value Pattern of depreciation Fair value at Dec. 31, 2015 Balance in Machinery account after proportionate method revaluation on Dec. 31, 2015 Balance in Accumulated Depreciation account after proportionate method revaluation on Dec. 31, 2015 Cumulative balance in (Revaluation Gain or Loss/ Revaluation Surplus (OCI) at Jan. 1, 2017 Fair value at Dec. 31, 2017 Straight-line Straight-line 430,000 334,000 445,333 111,333 (20,000) 543,158 113,158 12,000 300,000 245,500 Machine #1 Jan. 2, 2014 $472,000 8 years Machine #2 June 30, 2013 $528,000 12 years Acquisition date Original cost Original estimate of useful life Original estimate of residual value Pattern of depreciation Fair value at Dec. 31, 2015 Balance in Machinery account after proportionate method revaluation on Dec. 31, 2015 Balance in Accumulated Depreciation account after proportionate method revaluation on Dec. 31, 2015 Cumulative balance in (Revaluation Gain or Loss/ Revaluation Surplus (OCI) at Jan. 1, 2017 Fair value at Dec. 31, 2017 Straight-line Straight-line 430,000 334,000 445,333 111,333 (20,000) 543,158 113,158 12,000 300,000 245,500