On 1 July 2017, Cambridge Ltd paid $250,000 cash to acquire a machine. On this date it was estimated that the machine had a useful life of ten years and a residual value of $30,000. In accordance with AASB 116 Property, Plant and Equipment, Cambridge Ltd uses the revaluation model as its accounting policy to measure items of property, plant and equipment and the straight-line method of depreciation. Cambridge Ltd has a 30 June reporting date.

An independent valuer provided the following fair values for the machine:

Reporting date Fair value

30 June 2018 $255,000

30 June 2019 210,000

30 June 2020 173,500

On 31 December 2020, the machine was sold for $160,000 cash. Required Prepare the journal entries to account for the events and transactions in relation to the machine between 1 July 2017 and 31 December 2020. you are also required to show the calculations at the end and explain all the criteria in relation to the AASB 116 Plant, Propert and Equipment.