Question: Task 1 ABC Ltd. has an item of plant whose current carrying amount is 400 000 (accumulated depreciation being 40 000). The asset had cost

Task 1

ABC Ltd. has an item of plant whose current carrying amount is 400 000 (accumulated depreciation being 40 000). The asset had cost 600 000. It was revalued downwards from a carrying amount of 540 000 to 440 000, with the following accounting entry being passed:

Dr Accumulated Depreciation 60 000

Dr Loss Downward Revaluation of Plant (P&L) 100 000

Cr Plant 160 000

Show the appropriate accounting entries, if the plant is now assessed as having a fair value of 460 000. The tax rate is 30%.

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