Zora Limited (Accounting for plant assets) Zora Limited is a textile giant headquartered in Spain that reports its financial statements in accordance with IFRS and closes it books on June 30 of each year. Zora acquired a new machine to implement textile laser printing on 1 July 2012 for 7,660,000. When the machine was acquired, it was initially assessed as having a life of 20,000 hours and a residual value of 160,000. During the reporting period ending 30 June 2013 the machine was operated for 6,000 hours. On 1 July 2013 the machine underwent a necessary major upgrade to increase its effectiveness costing 1,730,000. Management believes that this upgrade will also add an additional 3,000 hours of operating time to the machine's life and estimates a new residual value to be at 340,000. During the reporting period ended 30 June 2014 the machine was operated for 8,000 hours. REQUIRED a. Prepare all the journal entries for Zora to account for the acquisition, subsequent expenditure and depreciation on the asset for the periods as described per above. b. Suppose that on July 1 2014, the asset is sold for 4 million Euro. Record the required journal entry (or entries) with respect to this sale (and explain the logic of your accounting registrations)