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Revaluation increment . Assume that, as at 1 July 2018, Farrelly Ltd has an item of machinery that originally cost $40 000 and has accumulated
Revaluation increment . Assume that, as at 1 July 2018, Farrelly Ltd has an item of machinery that originally cost $40 000 and has accumulated depreciation of $15 000. Its remaining life is assessed to be five years, after which time it will have no residual value. While completing a regular revaluation of all machinery, Farrelly decided on 1 July 2018 that the item should be revalued to its current fair value, which was assessed as $45 000 1 July 2018 that the item should be revalued to its current fair value, which was assessed as $45 000 At initial recognition 1 Jul 2016 Dr Subsequent recognition at cost Depreciation 30 jun 2017 1st yr Dr Book value Acc dep Carrying amount Fair value Surplus 7,500 Acc dep 7,500 Journal 1 July 2018 2nd yr 30 jun 2018 Dr Cr 7,500 Acc dep Acc dep 7,500 Cr 30 June 2018 Cr 40,000 15,000 Acc dep Net Machinery Revaluation increment . Assume that, as at 1 July 2018, Farrelly Ltd has an item of machinery that originally cost $40 000 and has accumulated depreciation of $15 000. Its remaining life is assessed to be five years, after which time it will have no residual value. While completing a regular revaluation of all machinery, Farrelly decided on 1 July 2018 that the item should be revalued to its current fair value, which was assessed as $45 000 1 July 2018 that the item should be revalued to its current fair value, which was assessed as $45 000 At initial recognition 1 Jul 2016 Dr Subsequent recognition at cost Depreciation 30 jun 2017 1st yr Dr Book value Acc dep Carrying amount Fair value Surplus 7,500 Acc dep 7,500 Journal 1 July 2018 2nd yr 30 jun 2018 Dr Cr 7,500 Acc dep Acc dep 7,500 Cr 30 June 2018 Cr 40,000 15,000 Acc dep Net Machinery
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