Accounting for PPE (20 marks)

On 30 June 2019, the statement of financial position of Sweeney Ltd showed the following non-current asset after charging depreciation:

Equipment

Accumulated Depreciation

$

300000

(180000)

120 000

The company has adopted fair value for the valuation of non-current assets. This has resulted in the recognition of revaluation loss in previous periods for the equipment of$6 000.

On 30 June 2019, an independent valuer assessed the fair value of the Equipment to be $130000 and useful life to be 5 years with no residual value.

On 31 December 2019, an independent valuer again revalued the asset to $110 000 and useful life to be 4 years with no residual value.

On 30 June 2020, the Equipment was sold for cash $90 000

The income tax rate is 30%.

Required

the necessary journal entries related to the Equipment from 30 June 2019 to 30 June 2020