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Fast Movers Ltd Purchased a Machine on the First Day

Question 28

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Fast Movers Ltd purchased a machine on the first day of their financial year: 1 January 2002.The machine cost $75 000 and has an expected useful life of 10 years at which time its salvage value will be $8000.An even pattern of benefits is expected to be derived from the machine.Then on 31 December 2005 (3 years later) the machine is sold for $65 000.What are the appropriate journal entries to record the disposal of the machine in line with the requirements of AASB 116?


A) Fast Movers Ltd purchased a machine on the first day of their financial year: 1 January 2002.The machine cost $75 000 and has an expected useful life of 10 years at which time its salvage value will be $8000.An even pattern of benefits is expected to be derived from the machine.Then on 31 December 2005 (3 years later) the machine is sold for $65 000.What are the appropriate journal entries to record the disposal of the machine in line with the requirements of AASB 116? A) B) C) D) E) None of the given answers.
B) Fast Movers Ltd purchased a machine on the first day of their financial year: 1 January 2002.The machine cost $75 000 and has an expected useful life of 10 years at which time its salvage value will be $8000.An even pattern of benefits is expected to be derived from the machine.Then on 31 December 2005 (3 years later) the machine is sold for $65 000.What are the appropriate journal entries to record the disposal of the machine in line with the requirements of AASB 116? A) B) C) D) E) None of the given answers.
C) Fast Movers Ltd purchased a machine on the first day of their financial year: 1 January 2002.The machine cost $75 000 and has an expected useful life of 10 years at which time its salvage value will be $8000.An even pattern of benefits is expected to be derived from the machine.Then on 31 December 2005 (3 years later) the machine is sold for $65 000.What are the appropriate journal entries to record the disposal of the machine in line with the requirements of AASB 116? A) B) C) D) E) None of the given answers.
D) Fast Movers Ltd purchased a machine on the first day of their financial year: 1 January 2002.The machine cost $75 000 and has an expected useful life of 10 years at which time its salvage value will be $8000.An even pattern of benefits is expected to be derived from the machine.Then on 31 December 2005 (3 years later) the machine is sold for $65 000.What are the appropriate journal entries to record the disposal of the machine in line with the requirements of AASB 116? A) B) C) D) E) None of the given answers.
E) None of the given answers.

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