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Question - At 1 July 2017, Lobstar Ltd acquired the following non-current assets:
Equipment $100,000
Vehicles $80,000
They are in different classes of non-current assets and are to be measured at fair value. The expected useful lives of vehicles and equipment are 5 years and 10 years, respectively.
At 30 June 2015, the fair values of both assets were assessed. The equipment had a fair value of $82,000, and the vehicles, $70,000. The remaining useful lives were assessed to be 8 years for equipment and 7 years for vehicles.
Required - Prepare the journal entries for Lobstar Ltd for the years ending 30 June 2015 and 2016.
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