You are appointed as accounts executive in pak fans pvt. Ltd. On the first day of your job you are tlod that company bought machinery on 01 July 2017 for PKR 2,400,000 from China. The delivery and flight cost of plant to bring the plant in Pakistan was PKR 500,000 was spent on Freight to bring and assemble plant in industrial area Islamabad. You are also told that cost if the trail production was PKR 100,000. A special kind of license is also required to from environmental department annually. The fee of the license I'd PKR 100,000 at that time the management decided that plant will have useful life of 5 years and machinery than can be disposed of For PKR 500,000 pro rata reducing balance policy is adopted for all kind of capital expenditures.

Required:
1) How the capital expenditure will be measured and recognize for the year ended 31 Dec 2017.
2) Calculate deprecation charge carrying value for first three years of acquisition also show the T-accounts of accumulated depreciation account machinery account and deprecation expense account for the first three years.
3) At the start of financial year 2020 ( on 1 jan 2020) the management decided to revalue machinery to 3,000,000 while Remaining useful life will be. 3 years with 0 residual value. Show how to recognize the revaluation by passing journal entry and relevant T-accounts.
4) Calculate deprecation charge for year ended 31 Dec 2020 and also show the treatment of new deprecation charge.