a journal entries for impairment loss

bjournal entry for the reversa of any previous impairment loss

On 1 July 2017. Lincoln Ltd purchased an item of machinery for $150,000. On this date it was estimated that the item of machinery had a useful life of ten years and zero residual value. Lincoln Ltd uses the cost model to measure items of property, plant and equipment and the straight-line method of depreciation. Lincoln Ltd has a 30 June reporting date. In relation to the item of machinery. Lincoln Ltd has identified indicators of impairment for the reporting periods ending 30 June 2019 and 30 June 2020 and indicators for a reversal of impairment for the reporting period ending 30 June 2021 . The fair value less costs of disposal and the value in use of the item of machinery on these dates were as follows