Revaluation of property, plant and equipment You are theaccountant for Superstar Ltd, and you are required to account forthe company’s equipment for the years ended 30 June 2017 and 30June 2018, which are measured using the revaluation model. Thedirectors elect to depreciate equipment on a straight-line basis.Equipment 1: The first equipment has a carrying amount as follows,prior to any depreciation or revaluation being recognised for theyear ended 30 June 2017: Revalued amount (as at 30 June 2016):$60,000 Less: accumulated depreciation - Carrying amount $60,000This equipment was revalued for the first time on 30 June 2016,from $70,000 to $60,000. The directors determined that as at 30June 2016, this equipment had an estimated remaining useful life of4 years, and an estimated residual value of $10,000. The directorshave determined that the fair value of this equipment on 30 June2017 is $55,000. At 30 June 2017, this equipment had an estimatedremaining useful life of 3 years, and the residual value remainsunchanged at $10,000. The directors have determined that the fairvalue of this equipment on 30 June 2018 is $44,000. Equipment 2:The second equipment at has a carrying amount as follows, prior toany depreciation or revaluation being recognised for the year ended30 June 2017: Revalued amount (as at 30 June 2016): $20,000 Less:accumulated depreciation - Carrying amount $20,000 This equipmenthas been revalued a number of times, with revaluation decrementsamounting to $1,000 being previously recognised in profit or loss.The directors determined that as at 30 June 2016, this equipmenthad an estimated remaining useful life of 4 years, and an estimatedresidual value of $4,000. The directors have determined that thefair value of this equipment on 30 June 2017 is $18,000. At 30 June2017, this equipment had an estimated remaining useful life of 3years, and the residual value has been revised to $6,000. Thisequipment is sold on 31 December 2017 for $13,000. Required:Prepare the necessary journal entries to account for each of theabove equipment for the years ended 30 June 2017 and 30 June 2018(including entries for depreciation, revaluations, and anydisposals). Show all relevant workings. Note: you are not requiredto account for income tax associated with revaluations. MarkingGuide - Question 4 Max. marks awarded Journal entries 12 Workings4