Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Answer B please On 1 July 2014, Capers Ltd purchased equipment with cash for a total cost of $220,000 including 10% GST. The estimated useful
Answer B please
On 1 July 2014, Capers Ltd purchased equipment with cash for a total cost of $220,000 including 10% GST. The estimated useful life of the equipment was 10 years, with an estimated residual value of $15,000. The entity's reporting period ends on 30 June, and it uses straight-line depreciation. On 1 July 2016 , the entity revalued the equipment upwards by $17,000 to reflect the fair value. The revised useful life was 8 years and residual value was estimated at $10,000. On 1 January 2018 , Capers Ltd revalued the equipment downwards by $20,000 to reflect the fair value. Date Account and explanation Accumulated depreciation-equipment 30/6/16 Depreciation expense Accumulated depreciation-equipment 1/7/16 Accumulated depreciation-equipment A Equipment (To record equipment at carrying value before revaluation) Equipment Revaluation surplus (To record revaluation) 30/6/17 Depreciation expense Accumulated depreciation-equipment 1/1/18 Depreciation expense 10,625 Accumulated depreciation-equipment (To record depreciation expense) 1/1/18 Accumulated depreciation-equipment Equipment (To record equipment at carrying value before revaluation) Revaluation surplus Revaluation expense Equipment (To record revaluation) Attempts: 1 of 2 used (b) Your answer is incorrect. Calculate the new carrying value of the equipment immediately after the revaluation downwards. New carrying value Save for Later $ 111.125 Attempts: 1 of 2 used SubmitStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started