Topic 7: Property Plant and Equipment Homework Questions and Answers The statement of financial position for EMU Ltd at 30 June 20X2 showed the following non-current assets after charging deprecation. Equipment Accumulated depreciation Machinery Accumulated depreciation $ 900,000 (300,000) 600,000 500,000 (150,000) 350,000 The company has adopted fair value for the valuation of non-current assets. At 30 June 20X2 the balance of the asset revaluation surplus for the equipment was $28,000 as a result of previous revaluations. Depreciation for equipment and machinery is expensed using the straight-line method with zero residual value. For the year ended 30 June 20X3 the annual depreciation expense for equipment was estimated to be $125,000 and $50,000 for machinery. On 30 June 20X3, an independent valuer assessed the fair value of the equipment to be $495,000 and the machinery to be $252,000. At 30 June 20X3 the equipment and machinery had remaining useful lives of 10 years and 6 years respectively, with zero residual value. At 31 December 20X4, and independent valuer assessed the fair value of the equipment to be $355,750 and the fair value of the machinery to be $259,000. The tax rate is 30%. Required 1. Show workings for the revaluations of Equipment and Machinery for the period 30 June 20X2 to 30 June 20X5 2. Prepare journal entries for Equipment for the period 1 July 20X2 to 31 December 20X4. 3. Prepare journal entries for Machinery for the period 1 July 20X2 to 31 December 20X4.