On $1$ April $2024,$ Apple Ltd$.$ placed an order for a machine from a company in the

USA. The machinery was delivered on $30$ April $2024.$ The list price is $$719,000,$ and

Apple Ltd successfully negotiated a trade discount of $4\%.$ The invoice was paid on $1$

June. Import duties amounted to $2\%$ of the purchase price.

The following costs are also additionally incurred.

Apple Ltd depreciates machinery using a straight$-$line method over $8$ years based on

historical cost with no residual value. After the $8$th year, the machinery must be

dismantled at the cost of $$60,000.$

As of $30$ June $2025,$ management decided to adopt the fair valuation model, and an

independent professional valuer valued the machinery at $$699,000$ and a $7-$year

economic life.

The machinery was revalued in June $2026.$ Based on the revised estimates, its new

fair value is $$625,000,$ and its remaining economic life has not changed.

On $30$ September $2026,$ Apple Ltd sold the machine for $$615,000.$

$($a$)$ Calculate the cost of the machinery. Explain whether or not each item should be capitalised with reference to AASB.

$($b$)$ Show all journal entries in relation to the machinery purchase, depreciation, revaluation and disposal for the years ended $30$ June $2024$ to $30$ September $2026.$ Indicate any revaluation gain or loss with P$+$L or OCI and show closing entries of gain or loss to the asset revaluation surplus account. All workings must be clearly shown.

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