Question 4 Vertonghen Ltd has various non-current assets, including Buildings and Machinery. The Buildings were purchased on 1 July 2009, have an anticipated residual value of $400,000 and an expected useful life of 20 years. The Buildings are being recorded under the revaluation model (AASB 116). The machinery was purchased on 1 July 2013. It has an anticipated residual value of $80,000 and an expected useful life of 15 years. The machinery is being recorded under the cost model (AASB 136). Both assets are being depreciated using the straight-line method. An extract of the balance sheet at 1 July 2015 is provided below: Non-current Assets Buildings Less Accumulated Depreciation Machinery Less Accumulated Depreciation 750,000 (105,000) 645,000 230,000 (20,000) Information relating to the assets at 30 June 2016 is: Machinery Value in Use Machinery Fair Value Costs to sell Machinery Buildings fair value Buildings Value in Use $197,000 $198,000 $2,000 $712,000 $713,000 $1,000 Costs to sell Buildings Information relating to the asset at 30 June 2017 is: Buildings fair value Buildings Value in Use $507,000 $509,000 $1,000 Costs to sell Buildings Required: a) b) Prepare the general journal entries for the year ended 30 June 2016 for both assets, taking into account the information provided above. Justify your answer and show all workings Prepare the general journal entries for the year ended 30 June 2017 for the Buildings. Justify your answer and show all workings. (Total: 9+5=14 marks)