Mendelssons Ltd Has a Machine That Has Been Revaluing Over

question 21

Multiple Choice

Mendelssons Ltd has a machine that has been revaluing over a number of years. The valuation as at 1 January 2002 is $130,000. The previous valuation was $145,000 and the accumulated depreciation is $40,000. The revised salvage value is $15,000 and the estimated useful life remaining is 12 years. The benefits from the machine are expected to be derived evenly over its life. In the previous year, the machine had been devalued by $15,000 and this amount written off to the income statement. What are the entries at 1 January 2002 to record the revaluation and at 31 December 2002 to record depreciation?

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Definitions:

Real Number Line

A line that graphically represents all possible real numbers, where each point corresponds to a unique real number.

Entirely Negative

A term describing a scenario where all values or aspects of something are negative or below zero.

Entirely Positive

A term that could suggest a situation or value is purely positive, without any negative parts or aspects. NO.

Interval

A range of numbers between two set points.