AccountingOn 30 June 2019, Swan Ltd acquired a machinefor $180 000 cash, with an expected useful lifeof 9 years and a zero residual value. Thecompany has adopted fair value for thevaluation of non-current assets.On 30 June 2020, the company hired anindependent valuer who assessed the value ofthe machine to be $175 000 with a remaininguseful life of 8 years and residual value of $5000.On 30 June 2021, the fair value of the machine is$122 000 with a remaining useful life of 6 yearsand zero residual value.The company uses straight-line depreciationmethod for depreciating all its property, plantand equipment. Income tax rate is 30%. Thefinancial year ends on 30 June.RequiredPrepare all the necessary journal entries relatedto the machine from 30 June 2019 to 30 June2021.

When a company revaluates the value of its fixed assets on the basis of Fair Market Value, the…

On 30 June 2019, Swan Ltd acquired a machine for $180 000 cash, with an expected useful life of 9 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 $175 000 with a remaining useful life of 8 years and residual value of $5 00. On 30 June 2021, the fair value of the machine is $122 000 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.

On 30 June 2019, Swan Ltd acquired a machine for $180 000 cash, with an expected useful life of 9 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 $175 000 with a remaining useful life of 8 years and residual value of $5 00. On 30 June 2021, the fair value of the machine is $122 000 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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