On 30 June 2023, the statement of financial position of Cuckoo Ltd showed the following non-current assets after charging depreciation.

The company has adopted fair value for the valuation of non-current assets. This has resulted in the recognition in previous periods of an asset revaluation surplus for the building of \(\$ 56000\). On 30 June 2023, an independent valuer assessed the fair value of the building to be \(\$ 640000\) and the vehicle to be \(\$ 90000\).

Required 

1. Prepare any necessary entries to revalue the building and the vehicle as at 30 June 2023.
2. Assume that the building and vehicle had remaining useful lives of 25 years and 4 years respectively, with zero residual value. Prepare entries to record depreciation expense for the year ended 30 June 2024 using the straight-line method.

Transcribed Image Text:

Building Accumulated depreciation Motor vehicle Accumulated depreciation $ 1200 000 (400 000) $ 800 000 120 000 (40.000) 80 000