Question: money ltd acquired equipment on 1 july 2021 at 105000...
Money Ltd acquired equipment on 1 July 2021 at $105,000. The equipment is depreciated using the straight-line method and subsequently measured using the revaluation model. Money Ltd expects the equipment to have 7 years of useful life and a zero residual value. The information below is available regarding the equipment in the following periods. Date Fair Value Cost to Sell Value in Use 30 June 2023 $ 85,000 $ 2,000 $90,000 30 June 2025 $ 45,000 $ 3,000 $40,000
Required Assuming indications of impairment exist on the dates above, please prepare the general journal entries (as per template below) to account for the equipment on the following dates:
a. 30 June 2023
b. 30 June 2025