Question
n 1 July 2014, Atropos Company purchased a depreciable asset at a cost of $1.2 million. The asset had an estimated useful life of 12
n 1 July 2014, Atropos Company purchased a depreciable asset at a cost of $1.2 million. The asset had an estimated useful life of 12 years and was depreciated on a straight-line basis. The recoverable amounts of the asset were as follows:
ear ended 30 June | Recoverable amount |
---|---|
2015 | $1 000 000 |
2016 | 900 000 |
2017 | 800 000 |
2018 | 850 000 |
Indicators of impairment were identified on 30 June 2015, 2016 and 2017, while indicators of a reversal of impairment were found on 30 June 2018. The asset was sold on 1 July 2018 for $860 000.
Assuming that the company adopts the cost model for accounting for non-current assets and complies with AASB 116 Property, Plant and Equipment and AASB 136 Impairment of Assets, show the general journal entries for the asset from 1 July 2014 to 1 July 2018.
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