On 1 January 2016, Leibhardt Ltd acquired two identical pieces of equipment for a total cost of $540 000. It was estimated that each item would have a useful life of 8 years and a residual value of $40 000 each. The company uses the straight‐line method of depreciation and its end of reporting period is 30 June.

On 1 July 2022, the company changed its accounting policy and revalued each item of equipment upwards by a total of $60 000, based on an independent valuer’s report, to fair value. There was no need to revise useful lives or residual amounts. On 31 December 2023, one of the items of equipment was sold for $120 000 cash.

Required

Prepare entries (in general journal format) in relation to the equipment from acquisition date to 31 December 2023.