ACC / ACF 1100 In Class Exercises Semester 2017 Week 10 Non-Currcnt Assets On 30 June 2014. after recording depreciation lhe financial year, balance sheel ot- Heatherwood Ltd showed the 10110wing non-currenl assets: Property Accumulated Depreciation Vehicles Accumulated Depreciation Equipment Accumulated Depreciation 300.000 ( 100,000) 120.000 (40.000) 40,000 (9.000) 200,000 80,000 3 1,000 Management applies the fair value model of AASB 1 16 to the property, and the cost model of AASB 136 to both the vehicles and equipment. A revaluation surplus of (credit) exists in relation to the property from a previous revaluation. Vehicles and Equipment have not been impaired previously. Current values of the non-current assets have been provided at 30 June 2014: Property fair value $160,000 Vehicles recoverable amount $90,000 Equipment rggpygrable amount S29,000 Required: (a) Prepare general journal entries for the year ended 30 June 2014 10 record the valuation adjustments of the non-current assets based on the relevanl information above in accordance with AASB 1 16 and AASB 136. Justify all calculations. (b) Provide an extractor the balance sheet ofl leatherwood I-td at 30 June 2014 after recording the adjusunents in pan (a). (c) Explain why depreciation of non-current assets must still be recorded independently of valuation adjustments.