Machine C was purchased on 30 November 2021 from an American supplier. Orico Limited paid the purchase price of $100 000 on 31 January 2022.

The following exchange rates are applicable:

Date	Spot rate	Average rate
30 November 2021	$1 = R14,36	$1 = R14,40
31 December 2021	$1 = R14,51	$1 = R14,48
31 January 2022	$1 = R14,48	$1 = R14,45 6

Additional information:

• The company's policy is to revalue machinery every two years to carry the machinery at net replacement cost.

• An independent appraiser will determine the replacement cost with reference to observable prices in an active market. The next revaluation date is 1 January 2021.

• Transfers are made annually from the revaluation surplus to retained earnings, representing the revaluation's realised portion.

• On revaluation, accumulated depreciation is set off against the gross carrying amounts.

• Depreciation on all assets is provided for according to the straight-line method, and residual values are insignificant. • You can ignore any tax implications.

Prepare the journal entries required in the records of Orico Limited for the year ending 31 December 2021 to account for the purchase of Machine C. The journal for the depreciation of the machine is not required. Round all answers to the nearest Rand.

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