Taylor Manufacturers Inc., a publicly listed company, has one machine that is

accounted for under the revaluation model. Technology in Taylor's industry is fast-

changing, causing the fair value of the machine to change significantly about every two

years. The machine was acquired on Jan. 2, 2017 with a cost of $500,000. The original

estimate of useful life is 10 years and the estimate of residual value is O. The company

uses straight-line depreciation. On Dec. 31, 2018, the company conducted revaluation

of the machine and reported Revaluation Surplus $8,000.

On Dec. 31, 2020, the fair value of the machine is $296,000 and the companv

conducted revaluation of the machine for the second time. Assuming the company's

books show that the depreciation of the machine during 2019 and 2020 was $51,000

each year and the net book value is $306,000. Prepare the revaluation-related journal

entries at Dec. 31, 2020, using the asset adjustment method.