At 30 June 2020, Harry Ltd has reported the following assets. Asset Carrying Amount ($) Useful Life Machine (Original cost = $300,000) 210,000 10 years Vehicle (Original cost = $280,000) 168,000 5 years Both assets are measured using the cost model and depreciated on a straight-line basis over their expected useful lives. On 31 December 2020, the company decided to change the basis of measuring the two assets from the cost model to the revaluation model. Machine was revalued to $250,000 with a new expected useful life of 10 years. Vehicle was revalued to $140,000 with a new expected useful life of 4 years. On 30 June 2021, Machine was revalued to $145,000. The tax rate is 30%. Required: Prepare the journal entries at 31 December 2020 and 30 June 2021 in relation to Machine and Vehicle. Template for journal entries: Date Particulars Debit Credit

Presented below is information related to equipment owned by Blue Company at December 31, 2020. Cost   $10,980,000 Accumulated depreciation to date   1,220,000 Expected future net cash flows   8,540,000 Fair value   5,856,000 Assume that Blue will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 5 years.

For each of the following depreciable assets, determine the missing amount. Abbreviations for depreciation methods are SL for straight-line and DDB for double-declining-balance. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) Asset A B C D E Cost 68,000 93,000 258,000 214,000 Residual Value $ 34,000 13,000 24,000 34,000 Service Life Depreciation (Years) Method 5 8 10 8 DDB SL SL DDB Depreciation (Year 2) $ 39,000 5,900 10,000 23,400

Nevertire Ltd purchased a delivery van costing $52,000. It is expected to have a residual value of $12,000 at the end of its useful life of 4 years or 200,000 kilometres. Ignore GST. Required: a) Assume the van was purchased on 1 July 2019 and that the accounting period ends on 30 June. Calculate the depreciation expense for the year 2019–20 using each of the following depreciation methods   straight-line  diminishing balance (depreciation rate has been calculated as 31%)  units of production (assume the van was driven 78,000 kilometres during the financial year) b) Record the adjusting entries for the depreciation at 30 June 2021 using diminishing balance method.  c) Show how the van would appear in the balance sheet prepared at the end of year 2 using Straight-line method.       June 1 4 Purchases 9 Sales 12 Purchases 21 Sales 26 Purchases Inventory       all purchases and sales are on credit.

On 1/1/19, O. Corp acquired equipment at a cost of $867k. O. Corp adopted the sum-of-the-yrs-digits method of depreciation for this equipment and had been recording depreciation over an estimated life of 8 yrs, with no residual value. At the beginning of 2022, a decision was made to change to the straight-line method of depreciation for this equipment. The depreciation expense for 2022 would be $173400 $72250 $45156 $108375