Question
On 30 September 2021, Golden Ltd acquired a vehicle for $300,000 cash, with an expected useful life of 10 years and a zero residual value.
On 30 September 2021, Golden Ltd acquired a vehicle for $300,000 cash, with an expected useful life of 10 years and a zero residual value. The company has adopted fair value for the valuation of non-current assets.
On 30 June 2022, the company hired an independent valuer who assessed the value of the vehicle to be $285,000 with a remaining useful life of 10 years and residual value of $5,000.
On 30 June 2023, the fair value of the vehicle is $227,000 with a remaining useful life of 8 years and zero residual value.
The company uses straight-line depreciation method for depreciating all its property, plant and equipment. Income tax rate is 30%. The financial year ends on 30 June.
Required
Create the necessary journal entries related to the vehicle from 30 September 2021 to 30 June 2023.
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