Question
Grace Ltd imported a grinding machine from Japan on 1 July 2019 at a cost of $550,000. The machine had an expected useful life of
Grace Ltd imported a grinding machine from Japan on 1 July 2019 at a cost of $550,000. The machine had an expected useful life of 4 years, and the company adopts the straight-line basis of depreciation. Grace Ltd measures this asset at fair value. Movement in fair values were as follows:
| Year | Fair value | Remaining useful life |
| 30 June 2020 | $600,000 | 3 years |
| 30 June 2021 | $200,000 | 2 years |
REQUIRED:
- Provide journal entries necessary to account for this machine for the financial year ending 30 June 2020 in accordance with AASB116 Property, Plant and Equipment. Show all workings supporting your answer. (4.5 marks)
(b) Provide journal entries necessary to account for this machine for the financial year
ending 30 June 2021 in accordance with AASB116 Property, Plant and Equipment.
Show all workings supporting your answer. (4.5 marks)
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Towards A Strategic Human Resource Management Roles Of HR Audit And Org Culture
Authors: Adel Al Samman
1st Edition
3330653051, 978-3330653054
