Question 2 (7 marks) An item of depreciable machinery is acquired on 1 July 2015 for $280 000. It is expected to have a useful life of 10 years and a zero-residual value (straight-line). On 1 July 2019, it is decided to revalue the asset to its fair value of $240 000.

Required

Provide journal entries to account for the revaluation (4 marks) In your own words explain and discuss when do you think should a revaluation increment be included as part of profit or loss? (3 marks)