period ed 30 Machinery 2035 Accumulated depreciation machinery Building Accumulated depreciation - building on to its assets: DR CR $ $ 875,000 275,000 2,250,000 750,000 The directors of Emerald Ltd changed the valuation method for machinery from the cost basis to the fair value basis on 30 June 2035 (machinery depreciation expense was recorded for the year ended 30 June 2035 prior to revaluation). Emerald Ltd has always measured its building using the fair value basis. The revaluation surplus account has a balance of $70,000 from previous revaluations. On 30 June 2035, an independent valuer assessed the fair value of the building to be $1,350,000 and the machinery to be $700,000. The income tax rate is 30%. Required: a) Provide the journal entries required to revalue the machinery for the financial year ended 30 June 2035. (12 marks) b) Provide the journal entries required to revalue the building for the financial year ended 30 June 2035. (14 marks) c) Assume that the building and machinery had remaining useful lives of 40 years and 10 years respectively, with zero residual value. Prepare entries to record depreciation expense for the year ended 30 June 2036 using the straight-line method. (4 marks)