Record all the necessary journal entries for the revaluation

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Question - Peter Ltd purchased a piece of equipment on 1 January 2018 at a cost of $100 000, and useful life of 8 years (no residual value).

The revaluation model was adopted for equipment on 31 December 2020. The fair value of the equipment on this date was $66 000. No changes were made to useful life and residual value.

On 30 June 2021, Peter Ltd obtains a fair value for equipment of $50 000.

Peter Ltd uses the straight-line depreciation method for equipment and calculates depreciation to the nearest month. The company tax rate is 30%. The reporting period ends 30 June.

Required - Record all the necessary journal entries for the revaluation of the equipment on:

a) 31 December 2020

b) 30 June 2021

Reference no: EM133051375

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