Practical Question 2 Accounting for PPE 13 Marks

On 30 June 2019, the Statement of Financial Position of Platinum Ltd showed the following non-current asset after charging depreciation:

Machine	800,000
Accumulated Depreciation	(300,000)
	500,000

As of 30 June 2019, the company decided to adopt the revaluation model for machine. Therefore, on 30 June 2019, an independent valuer assessed the fair value of the machine to be $560,000 with a remaining useful life of 8 years and a zero-residual value.

On 30 June 2020, the machine was revalued again to its fair value of 390,000 with a remaining useful life of 6 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). (13 marks)