*P10.11 Camco Manufacturers Inc., a publicly listed company, has two machines that are accounted for under the revaluation model. Technology in Camco's industry is fast-changing, causing the fair value of each machine to change significantly about every two years. The following information is available: Acquisition date Original cost Original estimate of useful life Original estimate of residual value Pattern of depreciation Fair value at Dec. 31, 2018 Machine #1 Jan. 2, 2017 $440,000 8 years Machine #2 June 30, 2016 $540,000 12 years -0- -0- Straight-line Straight-line 310,000 440,000 Balance in Machinery account after proportionate method revaluation on Dec. 31, 2018 413,333 555,789 Balance in Accumulated Depreciation account after proportionate method revaluation on Dec. 31, 2018 Cumulative balance in (Revaluation Gain or Loss)/ Revaluation Surplus (AOCI) at Jan. 1, 2020 Fair value at Dec. 31, 2020 103,333 115,789 (20,000) 230,000 12,500 328,000 Both machines were last revalued on December 31, 2018. Camco has a December 31 year end. Instructions a. Prepare the journal entries required for 2020, using the asset adjustment method. b. Prepare the journal entries required for 2020, using the proportionate method. Do not round intermediate calculations but round final amounts to the nearest dollar. c. Prepare a continuity schedule showing for each machine the amounts recorded to the Machine account and to the Accumulated Depreciation account, as well as indicating the carrying amount for each fiscal year from date of purchase to December 31, 2020, using (1) the asset adjustment method and (2) the proportionate method. Show the carrying amount under each method at the end of each fiscal year. d. Comment on the effects on the 2020 statement of comprehensive income with respect to parts (a) and (b). e. Comment on the effects on the December 31, 2020 statement of financial position with respect to parts (a) and (b). f. Digging Deeper Would a potential investor prefer Camco to use the asset adjustment method or the proportionate method to apply the revaluation model