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 30 June 2018 30 June 2019 30 June 2020 Fair value $255,000 210,000 173,500 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. Vulcan Metals Ltd is a metal engineering and steel fabrication company that operates a factory in Sydney. Metal production and fabrication involves the use of hazardous materials including methylene chloride, chromium VI (hexavalent chromium), and various metal working fluids. During the year ending 30 June 2020, management of Vulcan Metals Ltd decided that it would close its Sydney factory in five years' time and relocate its operations to rural NSW. The reason for this decision was that companies that relocated to rural areas were eligible for generous government grants as well as tax concessions. Because of its use of hazardous materials, Vulcan Metals Ltd is legally obligated to dismantle its Sydney factory and undertake an extensive clean-up of the land. Vulcan Metals Ltd engaged an environmental consulting firm who, as at 30 June 2020, provided the following estimates of the future costs of dismantling the factory and cleaning up the land: Cost $1,000,000 800,000 600,000 Probability 20% 70% 10% On 30 June 2020, the risk-free discount rate, based on five-year government bonds, is 6%. However, Vulcan Metals Ltd believes that a discount rate of 5% is appropriate to adjust for the risks specific to this liability. Required Determine the amount that, in your judgement, Vulcan Metals Ltd should recognise as a provision as at 30 June 2020. Justify the approach that you used to calculate the amount. (6 marks)