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Abbey Ltd purchased machinery on 1 October 2010 for $80,000. The estimated useful life of the machinery is 5 years, with an estimated residual of $5,000. The entity's balance date is 30 June, and it uses the straight-line method of depreciation. On 1 July 2011, the value is use was estimated to be $45,000 and the net selling price was $48,750.
Prepare the journal entries in relation to the equipment from the date of acquisition.
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