On 30 June 2020, MonkeyD Ltd acquired a machine for $400 000 cash, with an expected useful life of 10 years and a zero residual value. The company has adopted fair value for the valuation of non-current assets.

On 30 June 2021, the company hired an independent valuer who assessed the value of the machine to be $378 000 with a remaining useful life of 9 years and a zero residual value.

On 1 January 2023, the fair value of the machine is $300 000 with a remaining useful life of 7 years and a residual value of $2 000.

The company uses straight-line depreciation method for depreciating all its property, plant and equipment. Income tax rate is 30%. The financial year ends on 30 June.

Required

Prepare all the necessary journal entries related to the machine from 30 June 2020 and 1 January 2023. (15 Marks)