Question: On 30 June 2019, Steve Ltd acquired a machine for $200 500 cash, with an expected useful life of ten years and a zero

On 30 June 2019, Steve Ltd acquired a machine for $200 500

On 30 June 2019, Steve Ltd acquired a machine for $200 500 cash, with an expected useful life of ten years and a zero residual value. The company has adopted fair value for the valuation of non-current assets. On 30 June 2020, the company hired an independent valuer who assessed the value of the machine to be $185 000 with a remaining useful life of 8 years and residual value of $5 000. On 30 June 2021, the fair value of the machine is $150 000 with a remaining useful life of 6 years and zero residual value. The company uses straight-line depreciation method for depreciating all its property, plant and equipment. Income tax rate is 30%. The financial year ends on 30 June. Required Prepare all the necessary journal entries related to the machine from 30 June 2019 to 30 June 2021.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

page No01 Solution Given date On 30 June 2019 steve Ltd acqui sied a machine foor ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Kerosene at 25?C is flowing in the system shown in Fig. 11.21. The total length of 50 mm OD ? 1.5 mm wall hydraulic copper tubing is 30 m. The two 90? bends havea radius of 300 mm. Calculate the...

On 1 Jan. 2015, Miles Ltd. acquired a machine for $300,000 cash. The machine has an estimated useful life of 10 years with no residual value. On 31 December 2016, based on evidence that the machine...

On January 1, 2018, Jordan, Inc acquired a machine for $ 1,060,000. The estimated useful life of the asset is five years. Residual value at the end of five years is estimated to be $51,000. Calculate...

On March 1, 2018, CBS acquired a machine for 50,000 in cash. The estimated useful life was 10 years while the anticipated salvage value was 2,000. Below are presented a set of independent situations:...

(Issuance, Exercise, and Termination of Stock Options) On January 1, 2009, Scooby Corporation granted 10,000 options to key executives. Each option allows the executive to purchase one share of...

Relevant costs, sunk costs, product replacement decisions Syd Young, the production manager at Fuchow Company, purchased a cutting machine for the company last year. Six months after the purchase of...

Dambro purchased a new piece of equipment to be used in its new facility. The $350,000 piece of equipment was purchased with a $50,000 down payment and with cash received through the issuance of a...

A company must decide whether to buy Machine A or Machine B: At a 10% interest rate, which machine should be installed? Use an annual cash flow analysis in working this problem. Machine A Machine B...

Sam Eatmon, CFO of Chaiston Enterprises, is evaluating an opportunity to invest in additional manufacturing equipment that will enable the company to increase its net cash inflows by $150,000 per...

(Three Differences, Compute Taxable Income, Entry for Taxes) Havaci Company reports pretax financial income of $80,000 for 2010. The following items cause taxable income to be different than pretax...

Sweetum Candies manufactures jaw-breaker candies in a fully automated process. The machine that produces candies was purchased recently and can make 4,100 per month. The machine costs $9,000 and is...

Suppose Auchan (www.auchan.fr), a hypermarket chain based out of France, was considering opening three hypermarkets in the midwestern United States. What role would theory play in designing a...

A spherical source of intensity I0 radiates sound uniformly in all directions. Its intensity level is b1 at a distance r1, and b2 at a distance r2. Find b2 /b1.

Bertolino's Italian Restaurant accepted a reservation for its private dining room for a party in February. It received a security deposit of $ 5 0 0 , which will be returned after the dinner is held....

Joanna Mak Purchased a car wash for $480,000. If purchased separately, the land would have cost $120,000, the building $270,000, and the equipment $210,000. Determine the amount that should be...

Colletta Manufacturing purchased land next to its factory to be used as a parking lot. The expenditures incurred by company were as follows: purchased price, $600,000; brokers fees, $48,000; titles...

Tell whether each of the following transactions related to an office building is a revenue expenditure (RE) or a capital expenditure (CE). In addition, indicate whether each transaction is an...

Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business. Required Prepare a statement of cash flows for Business Solutions using the indirect method...

The most organization control that will be affected due to the pandemic will be the

What is one explanation for increased gross profit during periods of rising inventory costs when FIFO is used?

Holthausen Corporation issued $400,000 of 11 %, 20-year bonds at 108 on January 1, 2013. Interest is payable semiannually on June 30 and December31. Through January1, 2019, Holthausen amortized...

Harris Corporation pays senior management an annual bonus from a bonus pool. The size of the bonus pool is determined as follows. REQUIRED: a. Assume that senior management expects current earnings...

=+2. A random sample of ten homes in a particular area, each heated with natural gas, is selected, and the amount of gas (therms) used during January is determined for each home. The resulting...

=+b. Repeat the probability calculation in part (a) for samples of size n550, n5100, and n51000. (Use the normal approximation to the binomial.)

=+a. For random samples of size n510, calculate the area under the sampling distribution curve for x between the values 2 1 and 1 1. That is, find the probability that the sample mean lies within...