Question 3(20 marks)

At 1 July 2018, Twister Ltd acquired the following non-current assets:

Equipment$200 000

Vehicles160 000

They are in different classes of non-current assets and are to be measured at fair value. The expected useful lives of vehicles and equipment are 5 years and 10 years, respectively. At 30 June 2019, the fair values of both assets were assessed. The equipment had a fair value of $164 000, and the vehicles, $140 000. The remaining useful lives were assessed to be 8 years for equipment and 7 years for vehicles.

At 30 June 2020, the fair value of equipment was assessed to be $163 500 and the fair value of vehicles was $110 000.

Required:Prepare the journal entries for Twister Ltd for the years ending 30 June 2019 and 2020.