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Nunca Word Processing Service Ltd uses the straight-line method of depreciation. The companys financial year end is 31 December.

On 1 July 2016, Nunca purchased an IBM computer on credit from the Computer Centre for $7 250. The estimated useful life was 4 years and the estimated residual value was $1 250.

On 1 Jan 2019, the computer was revalued upwards to reflect the fair value of $6 000. The revised useful life was 3 years (starting from the revaluation date) and the estimated residual value was zero. On 30 June 2020, the computer was sold for $2 650.

Required:

1. Prepare all the journal entries in relation to the computer from the date of acquisition to the date of disposal assuming no GST. Closing entries are not required. Narrations are not required. (21 marks)

Date	Debit	$	Credit	$

2. What is the amount of the Gains or Loss on Sale of Computer on 30 June 2020? (1 mark) ___________

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