Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on 1 july 2021, herd ltd. acquired a machine for $

On 1 July 2021, Herd Ltd. acquired a machine for $50,000 and decided to depreciate...

70.2K

Verified Solution

Question

Accounting

On 1 July 2021, Herd Ltd. acquired a machine for $50,000 and decided to depreciate it for 16 years with no residual amount. The tax rate is 20%. Assume that the fair values of this asset were: Date Fair Value 1/7/2021 $55,000 , 31/8/2021 $44,000 and 30/6/2022 $72,000.

a. Using the cost model, prepare the relevant journal entries from the date of acquisition to 30 June 2022, including tax effects. (1 mark)

b. Using the revaluation model, prepare the relevant journal entries from the date of acquisition to 30 June 2022, including tax effects. (2 marks)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Your claim results in the following alternative hypothesis: Ha : μ ≠≠ 166 which you test at a...

Basic Math
Q

Highlight and name the origin and insertion areas for the; adductor brevis, adductor longus, adductor magnus,...

Medical Sciences
Q

Paper reserch gender and the cosmetology use APA style

Psychology
Q

Question 7 of 10 Which statement best describes the stranger s character OA The stranger...

Biology
Q

A Moving to another question will save this response Question 1 Phosphorus shortages in garden...

Biology
Q

apart they are driven by one 679 Hz oscillator and therefore emit identical sound waves...

Physics
Q

A right circular cylinder must have a volume of 100 m^3. Find the dimensions that...

Geometry
Q

8 15 11 i

Algebra
Q

Break-even sales price to $230. a. Compute the current break-even...

Accounting
Q

2 Management Accounting Final OSA.pdf - Adobe Acrobat Reader (32-bit) File Edit View Sian Window...

Accounting
Q

At September 30, the end of Beijing Companys third quarter, the following stockholders equity accounts...

Accounting
Q

please give me perfect answer Garda World Security Corporation has the following shares, taken...

Accounting