Required: (round all dollars amounts to the nearest whole dollar, and round the diminishing balance rate to four decimal places) Prepare all required journal entries for annual depreciation and revaluation for 2014 to 2019. Note: Dates are required for all journal entries, however explanations are not required.
Axel Ltd. owns equipment that it had purchased on January 1, 2014 for $1,500,000 cash. Axel applies the revaluation model to account for its assets and re-values them every two years. Axel uses the diminishing balance method to
The asset's fair values were as follows:
December 31, 2015 $1,400,000
December 31, 2017 $1,200,000
December 31, 2019 $1,000,000
On January 1, 2016 Axel replaced the motor with a newer and more efficient motor that added an additional 6 years to the useful life of the equipment and at this time Axel changed the depreciation method to straight line. There was no change to the residual value of the equipment.
Required: (round all dollars amounts to the nearest whole dollar, and round the diminishing balance rate to four decimal places)
Prepare all required
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