At 1 July 2014, William Ltd acquired the following non-current assets: Machine A Machine B Cost 100,000
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Question:
At 1 July 2014, William Ltd acquired the following non-current assets:
Machine A | Machine B |
Cost 100,000 | Cost 50,000 |
Useful Life 5 years | Useful Life 10 years |
The firm uses the valuation model for both assets
At 30 June 2015, the fair values of all assets were assessed. Machine A had a fair value of $110,000, and Machine B a fair value of $40 000. The remaining useful lives were assessed to be 4 years for Machine A and 4 years for Machine B.
At 30 June 2016 the fair values of Machine A and Machine B were reassessed. Machine A had a fair value of $80,000, and Machine B a fair value of $34, 000.
Required:
Prepare the journal entries for the assets of William Ltd for the years ending 30 June 2015 and 2016. Assume a tax rate of 30%.
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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