Question
Green Ltd purchased a new machine (Machine A) for cash $100 000 on 1 July 2017. Transport and installation costs of $2 000 were incurred
Green Ltd purchased a new machine (Machine A) for cash $100 000 on 1 July 2017. Transport and installation costs of $2 000 were incurred on the same day to bring the machine into use. The machine was expected to have a useful life of 5 years, with the residual value estimated at $4000. On 30 June 2018, the company adopted the revaluation model to account for the class of machinery. The fair value of Machine A was determined to be $75 000 on that date. The remainder useful life of Machine A was reassessed to 3 years with a residual value of $3 000. At a subsequent revaluation on 30 June 2019, the fair value of Machine A was determined to be $47 500. The company uses the straight-line depreciation method, recording depreciation to the nearest month and the nearest dollar. The end of its reporting period is 30 June. Required: Prepare general journal entries to record the above transactions including the depreciation journal entries required at the end of each reporting period (Narrations are not required).
could u teach me the whole solutions of this question? thx
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