On 1 July 2013, Mariza Ltd purchased a factory building for $13,500,000.Mariza Ltd depreciates buildings on a straight-line basis over 30 years, with zero residual value.Mariza Ltd measures the buildings using the cost basis of measurement.

On 1 June 2016, Mariza Ltd purchased equipment for $1,000,000 to install in its factory building.During June 2016, Mariza Ltd incurred the following costs relating to the new equipment:

• $80,000 installing the equipment in its factory building;
• $30,000 upgrading the water and electricity services to be connected to the equipment;
• $15,000 training staff to use the new equipment; and
• $10,000 testing the equipment to ensure it performed correctly.

On 1 July 2016, the equipment was ready for use, and Mariza Ltd commenced using and depreciating the equipment.Mariza Ltd depreciates equipment on a straight-line basis over 10 years, with zero residual value.Mariza Ltd measures equipment using the cost basis of measurement.

On 30 June 2018:

• Mariza Ltd decides to adopt the revaluation model for its buildings. The fair value of the factory building is $12,500,000.
• There is an indication that the equipment may be impaired. Mariza Ltd calculates the value in use of the equipment to be $760,000 and determines the net selling price of the equipment to be $720,000.

On 30 June 2020:

• The fair value of the factory building is $9,200,000.
• Mariza Ltd calculates the value in use of the equipment to be $620,000 and determines the net selling price of the equipment to be $660,000.

On 1 July 2020, the equipment was sold for $675,000.

Required:

Prepare all the journal entries relating to the factory building and equipment of Mariza Ltd, from 1 July 2017 to 1 July 2020, in accordance with the requirements of AASB 116:Property, Plant and Equipmentand AASB 136:Impairment of Assets.Provide allexplanations and workingsnecessary to support your answer.