Bears and Things Acquired a Toy-Stuffing Machine at a Cost

Multiple Choice

Bears and Things acquired a toy-stuffing machine at a cost of $150 000 on 1 July 2009.The machine had a useful life of 10 years and a residual value of $30 000.The benefits from the machine are expected to be derived evenly over its life.On 1 July 2011 the asset's fair value is $110 000 and the salvage value and useful life are expected to be unchanged (that is,there is 8 years of remaining life) .On 30 June 2009 the machine is sold for $60 000 cash.What are the journal entries required to record the depreciation for the year ended 30 June 2009 and the sale of the machine in accordance with AASB 116 if: (a) the revaluation is undertaken and (b) the revaluation is not recorded?

A)

B)

C)

D)