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The following information relates to Han Ltd, which has a year-end date of 31 December. Ignore GST. 1. On January 2010, an item of machinery
The following information relates to Han Ltd, which has a year-end date of 31 December. Ignore GST. 1. On January 2010, an item of machinery that cost S35 000 was sold for $17 600. Under the cost model, the accumulated depreciation up to the date of sale was S18 000. 2. On 1 January 2015, the directors of Han Ltd decide to adopt the revaluation model. At that date the non-current asset class for machinery was as follows Machinery Less: Accumulated depreciatioin $100 000 10 000 $90 000 Based on an independent assessment, the fair value of machinery was $95 000. Required Prepare general journal entries to record: 1. The sale of the item of machinery by Han Ltd on 1 January 2010. (5 marks) 2. The revaluation of the non-current asset class for machinery on 1 January 2015. Include the closing entries at the end of the reporting period. (7 marks)
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