QUESTION 2 HB Kitchenware Limited is a manufacturer and trader of high- quality kitchen utensils in Melbourne. The following transactions relate to the purchase of a new machine. The business is registered for goods and services tax. GST rate is 10% July 1 2016 Purchased a new machine. The machine had a recommended retail price of $62,000(plus GST), but after careful negotiation it was purchased for $55,000 (plus GST). The delivery of the machine cost $2,000 (plus GST) and $3,000 (plus GST) The machine, the delivery and the installation charges were all paid in cash. The straight-line method of depreciation will be used for this machine. It has an estimated useful life of 5 years with a residual value of $10,000. 2017 June 3 Maintenance costs of $500 (plus GST) for the machine were paid in cash 2018 1 July Paid $6,600 (GST included) for the installation of a special cutting wheel to the machine to improve the machine's productivity and the useful life. After installation of a special cutting wheel, the machine has an estimated useful life of 5 more years instead of 3 years with the residual value remaining unchanged at $10,000 2020 January 1 The management decided to revalue the machine upward to $50,000 to reflect its fair value REQUIRED: Prepare necessary general journal entries to record the following transactions. (Narrations are not required) a) The purchase of the Machine on 1 July 2016. b) Paid maintenance cost on 3 June 2017. c) The depreciation charge for the reporting period ended 30 June 2017 d) The purchase of the new cutting wheel on 1 July 2018. c) The revaluation of the machine on 1 January 2020. 6) Explain the main differences between costs incurred on a non-current asset that are capitalised as part of the asset cost as opposed to costs that are immediately expensed. In your answer, you are also required to explain the difference in accounting treatment impact on the accounting equation and provide an example of each to illustrate your answer. (word limit 150)