QUESTION 3

XYZ Ltd purchased machinery on 1 April 2017 for $500 000; the machinery had an estimated useful life of ten years.

On 1 October 2020, it was determined that the machinery had a FV of $360 000, a FV less costs to sell of $348 000, and a VIU of $350 000.

On 1 February 2023, it was determined that the machinery had a FV of $180 000, a FV less costs to sell of $175 000, and a VIU of 200 000.

Required:

Part A:

Assume XYZ Ltd used the cost model. Complete the financial statements for XYZ Ltd for the financial years ended 31 March 2018, 2021, 2022, 2023, and 2024. Show your workings.

Part B:

Assume XYZ changed to the revaluation model on 1 October 2020. Complete the financial statements for XYZ Ltd for the financial years ended 31 March 2018, 2021, 2022, 2023, and

2024. Show your workings.