On 31 May 2018, Photos Lit acquired a factory for $5,000,000 in cash. The sales price included land, building and machinery. An external valuer employed by Photos Lit believed that the cost could be allocated to the individual items in the following proportions: land 50%, building 30% and machinery 20%. Useful life for building and machinery are 20 and 10 years respectively, no residual value. The company decided to follow the cost model for these items. On 1 July 2019, Photos Lit acquired equipment at cost of $320,000 in cash, 8 years of useful life and no residual value. Then, the revaluation model is chosen for the equipment. Fair values for the asset were $310,000 on 31 December 2019 and $240,000 on 31 December 2020. On 30 September 2020, the company donated the machinery to the Dunedin City Council. The fair value of the machinery at the time of the donation was estimated to be $1,300,000. On 1 November 2021, the equipment was exchanged for a vehicle. The fair value of the equipment and the vehicle were estimated to be $230,000 and $280,000 respectively. The vehicle has 5 years useful life with no residual value and for valuation the cost model is selected. In November and December 2021, the economic performance of the vehicle was lower than expected, thus the company proceeded to perform an impairment test for the asset at balance day. It is estimated that the fair value less cost of disposal was $250,000 while the value in use was $240,000. Photos Lit uses straight-line method of depreciation for all its non-current assets and its balance day is 31 December.

a) Prepare the journal entries required by accounting standards from 2018 to 2021.

b) Assume that on 31 December 2022, Photos Lit has the opportunity of impairment loss reversal of the vehicle for the period 2021. Indicate the maximum amount of reversal for the vehicle that the company is entitled.