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Prepare all the necessary journal entries

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Question - On 30 June 2019, the statement of financial position of Sweeney Ltd showed the following non-current asset after charging depreciation:

Equipment Accumulated Depreciation

$300,000

(180,000)

120,000

The company has adopted fair value for the valuation of non-current assets. This has resulted in the recognition of revaluation loss in previous periods for the equipment of $6,000.

On 30 June 2019, an independent valuer assessed the fair value of the Equipment to be $130,000 and useful life to be 5 years with no residual value.

On 31 December 2019, an independent valuer again revalued the asset to $110,000 and useful life to be 4 years with no residual value.

On 30 June 2020, the Equipment was sold for cash $90,000.

The income tax rate is 30%.

Required - Prepare all the necessary journal entries related to the Equipment from 30 June 2019 to 30 June 2020.

Reference no: EM132951824

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