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Adelaide Ltd acquired a machine on 1 July 2007 at a cost of $100,000. The machine has an expected useful life of 5 years, and the company adopts the straight line basis of depreciationAdelaide Ltd measures the machine at fair value. Movements in fair values are as follows:
30 June 2008 $85,000 Remaining useful life: 4 years30 June 2009 $60,000 Remaining useful life: 3 years30 June 2010 $45,000
The company has a financial year ends on 30 June.
Required: Provide the journal entries used to account for this machine for all the relevant years ending 30 June, showing all necessary workings.
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