Question
On 30 June 2019, the statement of financial position of Mr S Ltd showed the following non-current asset after charging depreciation: Vehicle Accumulated Depreciation $
On 30 June 2019, the statement of financial position of Mr S Ltd showed the following non-current asset after charging depreciation:
|
| Vehicle Accumulated Depreciation | $
| 300 000 (150 000) 150 000 |
|
|
|
| |
|
|
|
|
|
|
|
|
| |
The company has adopted fair value for the valuation of non-current assets. This has resulted in the recognition of revaluation loss in previous period for the vehicle of $10 000.
On 30 June 2019, an independent valuer assessed the fair value of the vehicle to be $170 000 with a life of 5 years with no residual value.
On 31 December 2019 the Vehicle was again revalued to $160 000 with a useful life of 4 years with no residual value.
On 30 June 2020, the Vehicle was sold for $150 000.
The income tax rate is 30%.
Required
Prepare all the necessary entries relating to the Vehicle from 30 June 2019 to 30 June 2020. (20marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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
Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, George Foster, Srikant M. Datar, Howard D. Teall, Foster Horngren, Data Horngren
3rd Canadian Edition
0130355801, 978-0130355805
