Task 3 Christos Ltd. has a machinery with a carrying amount of $300,000 (accumulated...
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Accounting
Task 3
Christos Ltd. has a machinery with a carrying amount of $300,000 (accumulated depreciation being $50,000). The asset had cost $150,000. The machinery was revalued upwards from $130,000, with the following accounting entries were passed:
Dr Accumulated Depreciation 20,000
Dr Machinery 200,000
Cr Deferred Tax Liability 66,000
Cr Asset Revaluation Reserve 154,000
Show the appropriate accounting entries, if the machinery is now assessed as having a fair value of $ 70,000. The tax rate is 30%.
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