Prepare the journal entries required for 2020, using the asset adjustment method.

Prepare the journal entries required for 2020, using the proportionate method.

Prepare a continuity schedule showing for each machine the amounts recorded to the Machine account and to the Accumulated Depreciation account, as well as indicating the carrying amount for each fiscal year from date of purchase to December 31, 2020, using (1) the asset adjustment method and (2) the proportionate method.

Please don't answer after July 3, 8pm as I will receive solutions by then.

Riverbed Manufacturers Inc., a publicly listed company, has two machines that are accounted for under the revaluation model. Technology in Riverbed's industry is fast-changing, causing the fair value of each machine to change significantly about every two years. The following information is available: Machine #1 Machine #2 Jan. 2, 2017 June 30, 2016 $437,000 $576,000 8 years 12 years -0- -0- Straight-line Straight-line 306,750 468,000 Acquisition date Original cost Original estimate of useful life Original estimate of residual value Pattern of depreciation Fair value at Dec. 31, 2018 Balance in Machinery account after proportionate method revaluation on Dec. 31, 2018 Balance in Accumulated Depreciation account after proportionate method revaluation on Dec. 31, 2018 Cumulative balance in (Revaluation Gain or Loss/ Revaluation Surplus (OCI) at Jan. 1, 2020 Fair value at Dec. 31, 2020 409,000 591,158 102,250 123,158 (21,000) 236,500 12,000 325,000 Both machines were last revalued on December 31, 2018. Riverbed has a December 31 year end. Riverbed Manufacturers Inc., a publicly listed company, has two machines that are accounted for under the revaluation model. Technology in Riverbed's industry is fast-changing, causing the fair value of each machine to change significantly about every two years. The following information is available: Machine #1 Machine #2 Jan. 2, 2017 June 30, 2016 $437,000 $576,000 8 years 12 years -0- -0- Straight-line Straight-line 306,750 468,000 Acquisition date Original cost Original estimate of useful life Original estimate of residual value Pattern of depreciation Fair value at Dec. 31, 2018 Balance in Machinery account after proportionate method revaluation on Dec. 31, 2018 Balance in Accumulated Depreciation account after proportionate method revaluation on Dec. 31, 2018 Cumulative balance in (Revaluation Gain or Loss/ Revaluation Surplus (OCI) at Jan. 1, 2020 Fair value at Dec. 31, 2020 409,000 591,158 102,250 123,158 (21,000) 236,500 12,000 325,000 Both machines were last revalued on December 31, 2018. Riverbed has a December 31 year end