10 years 10 years 12 years Question 4 On 1 July 2016, Sunshine Limited (SL) acquired four machines namely A, B, C and D. The following information is available in respect of these machines: . B D Cost (GH in millions) 200 230 90 60 Expected useful life 6 years Active market value at 30 June 170 300 65 No active 2017 (GH in millions) market Renewal cost (GH in millions) 65 85 2 1 i. The renewal would allow SL to use the machines for another five years and it is incurred at the end of year. ii. SL uses the revaluation model for subsequent measurement of its assets. iii. An independent value has estimated the value of machine 'D' at GH130 million. Required: Compare the carrying value of machines with fair values (active market value) to determine the revaluation surplus or impairment loss and prepare extracts of financial statements