1. P Ltd has two non-current assets: land and machinery at 30 June 2020. The carrying amount of land is $800,000 and machinery is $80,000 (cost $100,000 less accumulated depreciation $20,000). On 30 June 2020, P Ltd revalued both assets and the fair value land was $750,000 while fair value of machinery was $110,000. On 30 June 2021, fair value of land was $775,000 but the value of the machinery was unchanged.

The tax rate is 30 percent.

Required

Provide the appropriate journal entries to record the revaluations of assets on 30 June 2020 to 30 June 2021. 10 Marks.