In the 30 June 2019 annual report of Gotout Ltd. the following information was reported for...
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In the 30 June 2019 annual report of Gotout Ltd. the following information was reported for equipment: Machinery (at cost) 24 420,000 Accumulated Depreciation (125,000) The Machinery consisted of one Machine - Machine A. The Machine was measured using the cost model and depreciated on a straight-line basis over a 10-year period. On 31 December 2019, the directors of Gotout Ltd. decided to change the basis of measuring the machine from the cost model to the revaluation model. Machine A was revalued to $325,000 with an expected useful | life of 5 years. As at 30 June 2020, Machine A was assessed to have a fair value of $290,000 with an expected useful life of 4 years. Required: Prepare the analysis and journal entries during the period 1 July 2019 to 30 June 2020 in relation to the Vehicle. Please show all workings. (lgnore tax effects and, narrations are not required). (Total 13 marks) In the 30 June 2019 annual report of Gotout Ltd. the following information was reported for equipment: Machinery (at cost) 24 420,000 Accumulated Depreciation (125,000) The Machinery consisted of one Machine - Machine A. The Machine was measured using the cost model and depreciated on a straight-line basis over a 10-year period. On 31 December 2019, the directors of Gotout Ltd. decided to change the basis of measuring the machine from the cost model to the revaluation model. Machine A was revalued to $325,000 with an expected useful | life of 5 years. As at 30 June 2020, Machine A was assessed to have a fair value of $290,000 with an expected useful life of 4 years. Required: Prepare the analysis and journal entries during the period 1 July 2019 to 30 June 2020 in relation to the Vehicle. Please show all workings. (lgnore tax effects and, narrations are not required). (Total 13 marks)
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The asset valuation method changed from cost to revaluation model and it is not a change in accounti... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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