Peters Ltd has a machine that originally cost $20,000 and has accumulated depreciation of $5,000. Its remaining life is assessed to be 5 years with no salvage value. The directors of Peters Ltd decide on 1 July 2003 to revalue the machine. They are unable to find market information on a machine in a similar state to theirs, so the market value of a new machine of the same type, $30,000, is used as a basis. What is/are the appropriate journal entry(ies) to record the revaluation?
E) None of the given answers.

Question

Quizplus · Accepted Answer

The Answer of Peters Ltd has a machine that originally cost $20,000 and has accumulated depreciation of $5,000. Its remaining life is assessed to be 5 years with no salvage value. The directors of Peters Ltd decide on 1 July 2003 to revalue the machine. They are unable to find market information on a machine in a similar state to theirs, so the market value of a new machine of the same type, $30,000, is used as a basis. What is/are the appropriate journal entry(ies) to record the revaluation?
E) None of the given answers.

Peters Ltd Has a Machine That Originally Cost $20,000 and Has