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The firm. Silvertone Motors Pty Ltd purchased machinery on 1 January 2022, at a cost of 58 400 000 plus GST. The machinery is depreciated
The firm. Silvertone Motors Pty Ltd purchased machinery on 1 January 2022, at a cost of 58 400 000 plus GST. The machinery is depreciated using the straight-line method over a useful life of 8 years with an expected residual value of $840 000. On 1 January 2025, an overhaul of machinery was made at a cost of $1 176 000 plus GST. Due to this overhaul. the useful life was re-estimated at 4 years from 1 January 2025, and the residual value was amended to 5420 000. The Carrying amount cost of parts replaced was considered to be $105 000 in total. The financial year ends on 31 December for Silvertone Motors Pty Ltd. [Using 4 Columns - Date Account / Debit/Credit , prepare General Journal entries to record the following.] Required: 1. The purchase of the machinery on 1 January 2022. 2. Depreciation expense for the 2022 financial year. 3. The overhaul expenditure on 1 January 2025. 4. Depreciation expense for the 2025 financial year. (Narrations are not required)
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