The top image is the question, the bottom image is the answer.

Within the answer, in working 1 (W1) Revaluation where did they get the cost from as well as the SOPOL OCI-Revaluation gain figure from?

And why do we CR cost for machine 2 and not DR like machine 1?

Q6 POLSON LTD Polson Ltd has supplied you with information about the two factory machines that they own: Machine 1 Machine 2 Depreciation policy Straight line 8 years Straight line 6 years Estimated useful life 000 000 Cost on 1 September 2016 Accumulated depreciation (2 years) 240,000 120,000 (40,000) (60,000) Carrying amount on 31 August 2018 180,000 80,000 Revaluation details: Revalued amount 264,000 112,000 5 years Revised estimated remaining useful life 6 years The revaluation was performed by an external qualified engineer, Diane Walsh from Engineering Values Ltd, on 1 September 2018. Polson Ltd has never revalued any assets before but has decided to make an annual transfers from its revaluation surplus to retained earnings in respect of excess depreciation. Required (a) Prepare extracts from Polson Ltd's financial statements for the year ended 31 August 2019 showing the effect of the revaluation of the machines. Produce the note to the financial statements for non-current assets (in so far as the (b) information allows) showing a separate column for each machine. (20 marks) Q6 POLSON LTD (a) Extracts from the financial statements for the year ended 31 August 2019 000 Statement of profit or loss Administrative expenses Includes depreciation on machines (44,000 + 22,400) Other comprehensive income Gain on revaluation (84,000 + 32,000) 66,400 116,000 Statement of change in equity Share Share Revaluation Retained Total capital 000 premium surplus 00 earnings equity 000 000 000 Balance at 1.9.2018 Total comprehensive income Dividends 116,000 (X) (X) Reserves transfer (14,000 + 2,400) (16,400) 16,400 Nil Balance at 31.8.2019 99,600 ===== Statement of financial position 000 Non-current assets Property, plant and equipment Includes NBV of two machines 309,600 Equity Share capital Share premium account Revaluation surplus Retained earnings 99,600 Workings (W1) Revaluation 000 Machine 1 Machine 2 000 DR Cost 24,000 DR Acc dep'n DR Acc dep'n 60,000 40,000 8,000 CR Cost CR SOPOL - OCi Revaluation gain CR SOPOL - OCI Revaluation gain 84,000 32,000