Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Modified from BFA605 October 2014 Final Exam Paper Question 2 Part A Ponting Ltd is a manufacturer of cricket bats and equipment for the Australian
Modified from BFA605 October 2014 Final Exam Paper Question 2 Part A Ponting Ltd is a manufacturer of cricket bats and equipment for the Australian Olympic team. On 1 July 2009, it purchased land with a grove of mature willow trees of the type used in the manufacture of cricket bats. The land was purchased for $400,000 cash. In 2010 it was found that the trees were producing better than expected bats, and the land was revalued to a fair value of $450,000. Unfortunately, in 2011 it was found that some of the land was subjected to flooding and unusable and the land was revalued to $420,000. The current tax rate is 30%. Required: Prepare all journal entries related to the land that are required on 30 June 2010 and 2011. Assume the revaluation model is used. Clearly show all your calculations. Narrations are not required
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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