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On 1 July 2021, Max Corp. purchased an equipment for $480,000 on cash. This equipment is depreciated using a straight-line method. The useful life is
On 1 July 2021, Max Corp. purchased an equipment for $480,000 on cash. This equipment is depreciated using a straight-line method. The useful life is 5 years and residual value is expected to be zero. The company uses revaluation model for the subsequent measurement of the equipment. The equipment is revalued on 31 December 2021 and the fair value is $450,000. The company's policy is to transfer the revaluation reserve, if any, to retained earnings when the equipment is de-recognized. The equipment is sold for $380,000 on 30 June 2022 . The company has the fiscal year-ending 31 December. Required: Prepare all relevant journal entries relating to the equipment for the period from 1 July 2021 to 30 June 2022. Indicate the date to each entry. Narratives for entries are not required
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