Larkspur Inc. purchased machinery on January 1, 2017, for $ 91,200. The machinery is estimated to have a salvage value of $ 18,000 after a useful life of 6 years.

Diamond Ltd acquired an item of polishing equipment on 1 July 2015 for $440,000. The equipmentis expected to have a useful life of 10 years and the straight-line method of depreciation is to be uşed. 'It has salvage value of $40,000. On 1 July 2017, the equipment is deemed to have a fair valye of $424,000 and revaluation is undertaken in accordance with the Diamond Ltd policy of measuring property, plant and equipment at fair value. The asset is still usable for next 8 years but the salvage value is determined to be zero. The asset is sold for $356,000 on 1 July 2019. Required: Provide the journal entries necessary at the following dates to account for the above transactions and events. (Ignore narrations). Show your working. (10 marks) 01/07/2015 01/07/2017 01/07/2019

Larkspur Inc. purchased machinery on January 1, 2017, for $ 91,200. The machinery is estimated to have a salvage value of $ 18,000 after a useful life of 6 years. (a) Compute 2017 depreciation expense using the straight-line method. Depreciation expense $4

Lockard Company purchased machinery on January 1, 2017, for $80,000. The machinery is estimated to have a salvage value of $8,000 after a useful life of 8 years. (a) Compute 2017 depreciation expense using the sum-of-the-years’-digits method. (b) Compute 2017 depreciation expense using the sum-of-the-years’-digits method, assuming the machinery was purchased on April 1, 2017.