On 1 January 20X2, ME Engineering Pte Ltd acquired a machine for $240,000 in cash. The machinery was expected to be useful for six years with no residual value. The company, a local company that adopts Singapore FRSs, employed the straight-line method to depreciate the machine. On 1 January 20X5, a modification was made to improve its productive efficiency at a cost of $30,000 in cash, which would extend the useful life of the machine by another year. At the same time, a component of the machine was replaced at a cost of $2,000 because of wear and tear. Required: Illustrate the accounting of the above transactions by preparing the necessary journal entries (with journal narratives and proper dates) required by ME Engineering Pte Ltd for the financial year ending 31 December 20X2 and 31 December 20X5. Please show all workings clearly. (16 marks)