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Question - Red Ltd acquired an item of plant on 1 July 2019 for $120 000, at which time the plant was expected to have a useful life of ten years, with no residual value.
Red Ltd has chosen to adopt the revaluation model for plant.
Required -
1. As at 30 June 2020, the fair value of the plant was estimated to be $99 000. There is no change in the estimated remaining useful life or residual value.
Ignoring tax, record the journal entries for the revaluation of the plant as at 30 June 2020.
2. As at 30 June 2021, the fair value of the plant was estimated to be $101 000. There is no change in the estimated remaining useful life or residual value.
Ignoring tax, record the journal entries for the revaluation of the plant at 30 June 2021.
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