Taste $($Pty$)$ Ltd purchased machinery for R$600,000$ on $1$ March $2020.$ The company depreciates machinery on straight$-$line basis over $15$ years, and the asset machinery has no residual value.

The company uses the revaluation model. On $1$ March $2021$ the machinery was revalued and its fair value was R$700,000.$

Due to the drop in demand of the products the machinery produces, on $28$ February $2022$ the recoverable amount of the machinery became R$240,000.$

The revaluation surplus is transferred to retained earnings over the machinery$$s useful life.

On $28$ February $2023$ the recoverable amount of the machinery was R$500,000.$

Required:

Prepare the Property, Plant and Equipment note to the annual financial statement for the year$-$ending $28$ February $2023.$ Comparatives are required.

Answer rating: 100% (QA)

To prepare the Property Plant and Equipment note to the annual financial statement for the yearendin... View the full answer