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Un 1 July 2020, GTW Ltd purchased a machinery at $120,000. GTW Ltd adopts the revaluation model for the machinery. The machinery is depreciated on
Un 1 July 2020, GTW Ltd purchased a machinery at $120,000. GTW Ltd adopts the revaluation model for the machinery. The machinery is depreciated on a straight-line basis over a 6-year period with nil residual value. On 30 June 2021, the fair value of the machinery is $90,000 and the recoverable amount is $95,000. The machinery has 5 years remaining useful life. On 30 June 2022, the recoverable amount of the machinery is assessed to be $83,000. Required: What are the journal entries to revalue the asset in accordance with the requirements of AASB 116 Property, Plent and Equipment at 30 June 2022? DR CR Accumulated depreciation (Machinery) 20,000 Machinery 20,000 Impairment loss (P&L) 10,000 Accumulated depreciation and impairment loss (Machinery) 10,000 DR CR Accumulated Depreciation (Machinery) 18,000 Machinery 18,000 O o DR CR Accumulated Depreciation (Machinery) 18,000 Machinery 18,000 Machinery 8,000 Impairment loss reversal (P/L) 8.000 DR CR Accumulated Depreciation (Machinery) 18,000 Machinery 18,000 Machinery 11,000 Impairment loss reversal (P/L) 11,000 DR CR Accumulated Depreciation (Machinery) 20,000 Machinery 20,000 Machinery 8,000 8,000 Impairment loss reversal (OCI)
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