Big Baguette Ltd purchased a dough rolling machine for $180,000 on 1 July 2024. The machine is depreciated straight line over 9 years with a nil residual value. The following information relates to the machine: Date Value in use Fair value Fair value less costs of sale 30 June 2025 $60,000 $80,000 $75,000 30 June 2027 $155,000 $150,000 $145,000 The useful life and residual value were not changed at any point. Required Provide the journal entries for the following (showing all workings): The impairment on 30 June 2025; Depreciation expense and any further impairments or reversals on 30 June 2027.

Answer rating: 100% (QA)

Journal entries for 30 June 2025 Dr Impairment expense 120000 Being impairment charge to write ... View the full answer