Problem - 1: (20 marks)

On 1 January 2016, Brad Corp. purchased an equipment for 1,000,000. This equipment is depreciated using a straight-line method. The useful life is 9 years and the residual value is expected to be 100,000. The company uses revaluation model for the subsequent measurement of the equipment. The equipment is revalued at each year-ending on 31 December, if necessary. On 31 December 2016, the fair value of the equipment is 740,000 with the same residual value at 100,000. On 31 December 2017, the asset was revalued again at the amount of 980,000 with a residual value of 0. The company's policy is to use the elimination method for any accumulated depreciation at the date of revaluation and transfer the revaluation reserve to retained earnings when the asset is disposed. Brad Crop. Sold the asset on 1 July 2018 for a cash payment of 1,000,000.

Required:

Prepare all relevant journal entries relating to the equipment for the period from 1 January 2016 to 31 December 2018. Indicate the date to each entry. Narratives for entries are not required. (20 marks)