On 1 July 2014, White Ltd hired $700,000 to benefit a medium that was to be used in the construction of furniture. On this bound, skill of White Ltd estimated that the medium had a advantageous morals of ten years and a residual rate of $100,000. In accordance with AASB 116 Ownership, Fix and Equipment, White Ltd uses the revaluation pattern as its accounting prudence to estimate items of ownership, fix and equipment and the straight-line arrangement of backbiting.
The serene rates of the medium restraint the chief three years were as follows:
30 June 2015: $685,000
30 June 2016: $620,000
30 June 2017: $520,000
On 31 December 2017, White Ltd sold the medium restraint $500,000 currency.
Based on the requirements of AASB 116 Ownership, Fix and Equipment, yield (where expedient) divert record entries (and sustaining circumspections) in affinity to the:
Measurement of the medium as at 30 June 2015,
Measurement of the medium as at 30 June 2016,
Measurement of the medium as at 30 June 2017, and
Sale of the medium on 31 December 2017.
Note that restraint any year/s that a revaluation record beginning is not attributable attributable attributable required, you should interpret this and yield a sustaining circumspection.