Determine what are the appropriate accounting entries

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Katrin LTD. nas a macninery with a carrying amount of €300 000 (accumulated depreaatl being $50 000). The asset had cost E150 000. The machinery was revalued upwards €130 000, with the following acounting entries were passed:

Dr Accumulated Depreciation 20 000

Dr Land 150 000

Cr Deferred Tax Liability 81 000

Cr Asset Revaluation Reserve 89 000

Question 1: What are the appropriate accounting entries, if the machinery is now assessed as having a value of E240 000? The tax rate is 30%.

Reference no: EM132482653

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