On 30 June 2019, TIE Ltd acquired a machine for $180 0o00 cash, with an expected useful life of 9years and a zero residual value. The company has adopted fair value for the valuation of non-currentassets.On 30 June 2020, the company hired an independent valuer who assessed the value of the machineto be S175 000 with a remaining useful life cf 8 years and residual value of 55 000.On 30 June 2021, the fair value of the machine is $122 O00 with a remaining useful life of 6 yearsand zero residual value.The company uses straight-line depreciation method for depreciating all its property, plant andequipment. Income tax rate is 30%. The financial year ends on 30 June.RequiredPrepare all the necessary journal entries related to the machine from 30 June 2019 to 30 June 2021.JOURNAL ENTRIESDATEDESCRIPTIONDRCR

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On 30 June 2019, TIE Ltd acquired a machire 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 202o, the company hired an independent valuer who assessed the value of the machine to be $175 000 with a remaining useful life cf 8 years and residual value of S5 000. 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.

On 30 June 2019, TIE Ltd acquired a machire 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 202o, the company hired an independent valuer who assessed the value of the machine to be $175 000 with a remaining useful life cf 8 years and residual value of S5 000. 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.

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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