Q Lyra Ltd. produces high-quality watches. Lyra Ltd. acquires a new item of machinery to produce these watches for 1,500,000. One month later the fair value of the machinery grows by 20% unexpectedly. Lyra Ltd. chooses the revaluation model for subsequent measure of PPBE. Lyra Ltd. revalues the machine as a result, but does not expect to revalue the item of machinery again in the future, as it is not typical for the item of machinery to change in value. Is the accounting treatment correct? Select the best response, and then click Submit. No, the revaluation should be made at the date of purchase. No, the revaluation should be made with sufficient regularity such that the carrying amount does not differ materially from that which would be determined using at the end of the reporting period Yes, only one revelation is necessary to apply the revaluation method. Yes, the revaluation should only occur where there is sufficient evidence of changes in fair value. Q Joy & Company acquires a machine that it is planning to use over a period of five years with a cost of $10,000 and an estimated residual value of $1,000. It is estimated that the machine has a capacity of 100,000 production hours. The entity used the machine for 20,000 hours in year one. It is estimated that the machine will produce 30,000 units. 10,000 units were produced in year one. What is the depreciation charge in year one if the machine is depreciated using: A straight-line method; The number of hours used; and The number of units of production made? - Select the best response, and then click Submit $1,100; 51,800:51,800 51.800: 51.800:53,000 52.000 52.000 52.000 52.000; 52,000: 53,333 Q Gamma Ltd. purchased ten office computers for 55,500 each. The estimated useful life is five years and the estimated residual value for each computer is 5500. Based on historical experience with similar computers, the economic benefits of the computers will be consumed more in the early years of the computer's life. What is the most appropriate depreciation method for these office computers? Select the best response, and then click Submit Straight-line method Diminishing balance method Revenue-based method Whichever depreciation method consistently applied as an accounting policy choice