Reference no: EM132569122

Question - On 1 July 20X1, Lachlan Ltd acquired two Buildings within the same class of Property, Plant and Equipment. These were paid for in cash. Information on these assets is as follows:

Building Yellow cost $140,000 with an expected useful life of 10 years and a residual value of $60,000.

Building Zebra cost $240,000 with an expected useful life of 15 years and a residual value of $30,000.

The Buildings are expected to generate benefits evenly over their useful lives (ie straight line depreciation). The class of property, plant and equipment is measured at fair value using the revaluation model specified in AASB116 Property, Plant and Equipment.

At 30 June 20X2, information about the assets is as follows:

Building Yellow had a fair value of $110,000. Its useful life was reassessed to 8 years from this date with a residual value of $50,000.

Building Zebra had a fair value of $250,000. Its useful life was reassessed to 12 years from this date with a residual value of $64,000.

On 31st March 20X3, Building Zebra was sold for $258,000 cash and not replaced.

At 30 June 20X3, Building Yellow had a fair value of $150,000. Its useful life was reassessed to 10 years from this date with a residual value of $30,000.

Required - Make the general journal entries in the records of Lachlan Ltd to record all the described events over the period 1 July 20X1 to 30 June 20X3 (inclusive), assuming the reporting periods end on 30th June. Round numbers to the nearest dollar.