Part A On 3 January 2022, Xavier Ltd exchanged a machine with Carey Ltd. with a cost of $430 000 and accumulated depreciation of $150 000 for a new similar machine with a price of $460 000. Ignore GST. Required: Prepare general journal entries including narrations to record the exchange of the machines. 1. the derecognition of the old machine, assuming a trade-in allowance of $260 000 was received for the old machine and the balance was paid with a loan from Trinity Bank Ltd, and; 2. the acquisition of the new machine. Part B On 2 January 2018, Resolve Ltd purchased a new machine for $54 000 with a useful life of 5 years and a residual value of $4000. Resolve Ltd has a maintenance contract with an external provider, XPlan Ltd, to conduct quarterly inspections and repairs to keep the machine in working order. This contract costs Resolve Ltd $1 200 per annum and is paid in advance yearly on 2 January. On 1 January 2022, Resolve Ltd decided to completely overhaul the machine at a cost of $14 600. This not only increased the productive capacity of the machine but extended the remaining useful life of the machine for 3 more years. The revised residual value at the end of the useful life of the machine was estimated to be $2000. The Accumulated Depreciation to 31 December 2021 was $40 000. Resolve Ltd has adopted the straight-line method of accounting for depreciation. The financial year ends on 30 June. Ignore GST. Required: Prepare general journal entries to record: 1. the purchase of the machine on 2 January 2018. 2. the payment of the maintenance repair contract on 2 January 2020. 3. the overhaul of the machine on 1 January 2022. 4. depreciation expense on the machine on 30 June 2022