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

		Machine #1			Machine #2
Acquisition date		Jan. 2, 2017			June 30, 2016
Original cost		$475,000			$600,000
Original estimate of useful life		8 years			12 years
Original estimate of residual value		0			0
Pattern of depreciation		Straight-line			Straight-line
Fair value at Dec. 31, 2018		335,250			488,000
Balance in Machinery account after proportionate method revaluation on Dec. 31, 2018		447,000			616,420
Balance in Accumulated Depreciation account after proportionate method revaluation on Dec. 31, 2018		111,750			128,420
Cumulative balance in (Revaluation Gain or Loss/ Revaluation Surplus (OCI) at Jan. 1, 2020		(21,000	)		13,000
Fair value at Dec. 31, 2020		250,000			329,000

Both machines were last revalued on December 31, 2018. Marigold has a December 31 year end.

1.Prepare the journal entries required for 2020, using the asset adjustment method.

Machine #1
1.
	(To record depreciation expense)
2.
	(To eliminate accumulated depreciation)
3.
	(To adjust the Machinery account to fair value)
	Machine #2
1.
	(To record depreciation expense)
2.
	(To eliminate accumulated depreciation)
3.
	(To adjust the Machinery account to fair value)

2.Prepare the journal entries required for 2020, using the proportionate method.

3.Prepare a continuity schedule showing for each machine the amounts recorded to the Machine account and to the Accumulated Depreciation account, as well as indicating the carrying amount for each fiscal year from date of purchase to December 31, 2020, using (1) the asset adjustment method and (2) the proportionate method.