Question
On 30 June 2019, the Statement of Financial Position of Gold Ltd showed the following non-current asset after charging depreciation: Machine 750,000 Accumulated Depreciation (250,000)
On 30 June 2019, the Statement of Financial Position of Gold Ltd showed the following non-current asset after charging depreciation:
Machine | 750,000 |
---|---|
Accumulated Depreciation | (250,000) |
| 500,000 |
As of 30 June 2019, the company decided to adopt the revaluation method for the machine. Therefore, on 30 June 2019, an independent valuer assessed the fair value of the machine to be $525,000 with a remaining useful life of 10 years and a zero-residual value.
On 30 June 2020, the machine was revalued again to its fair value of $440,000 with a remaining useful life of 8 years and a zero-residual value.
The income tax rate is 30% and the company uses straight line depreciation for all property, plant and equipment.
Required:
Prepare all necessary entries related to the machine from 30 June 2019 to 30 June 2021 (Narrations are not needed).
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