Required: (a) Prepare journal entries for the revaluation (b) What is the annual depreciation after the revaluation?

The Special Sounds company has been manufacturing DVD players with its machinery for the past two years and has just discovered that new machinery will be available which is much more efficient at producing DVD players. The existing machinery cost $90,000 to purchase on 1st July 2018 and was expected to last 6 years with no value at the end of its life. At 30 June 2020 the existing machinery was revalued to its current fair value of $35,000.At this stage it was determined that the machine would only have two more years useful life. Required: (a) Prepare journal entries for the revaluation (b) What is the annual depreciation after the revaluation