Question 5 PART A Peaceful Ltd's financial year ends on June 30. The company uses the Fair Value basis to value the company assets according to IAS16/AASB 116 Property, Plant and Equipment. On July 1, 2018, Peaceful Ltd purchased a machine for a total cost of $50,000. The estimated residual value of the machine at the end of its useful life is nil. Peaceful Ltd depreciates its non-current assets using the straight-line method at 25% per annum. These are the estimates of the following values as at June 30, 2021: Fair value Cost to sell Value in use 15,000 1,000 16,000 The residual value of the machine is estimated at $1,000 after the revaluation. Required: Prepare the necessary journal entries for the financial year 2021 including the annual depreciation using the Fair Value basis. Show all your workings and narrations. (10 marks) (ii) Compute the depreciation charge for the machine for the financial year 2022. Show your workings