A Machine Purchased by White Plc Had a Cost of €670

question 17

Multiple Choice

A machine purchased by White Plc had a cost of €670 000 and an accumulated depreciation balance of €120 000 at 30 June 2012.Its fair value is assessed at this time,with its first revaluation as €450 000.What is/are the appropriate journal entry(ies) to record the revaluation using the net method?

• A) \[\begin{array} { | l | l | l | l | }
• \hline \text { Dr } & \text { Accumulated depreciation —machine } & 120000 & \\
• \hline \mathrm { Cr } & \text { Machine } & & 120000 \\
• \hline & & & \\
• \hline \mathrm { Dr } & \text { Asset revaluation reserve } & 100000 & \\
• \hline \mathrm { Cr } & \text { Machine } & & 100000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | l | l | }
• \hline \text { Dr } & \text { Loss on revaluation of machine } & 220000 & \\
• \hline \mathrm { Cr } & \text { Machine } & & 220000 \\
• \hline
• \end{array}\]
• C) \(\begin{array}{|c|l|c|c|}
• \hline \mathrm{Dr} & \text { Accumulated depreciation-machine } & 120000 & \\
• \hline \mathrm{Cr} & \text { Machine } & & 120000 \\
• \hline & & & \\
• \hline \mathrm{Dr} & \text { Asset revaluation reserve } & 100000 & \\
• \hline \mathrm{Cr} & \text { Accumulated depreciation-machine } & & 100000 \\
• \hline
• \end{array}\)
• D) \(\begin{array}{|c|l|c|c|}
• \hline \mathrm{Dr} & \text { Accumulated depreciation-machine } & 120000 & \\
• \hline \mathrm{Cr} & \text { Machine } & & 120000 \\
• \hline & & & \\
• \hline \mathrm{Dr} & \text { Loss on revaluation of machine } & 100000 & \\
• \hline \mathrm{Cr} & \text { Machine } & & 100000 \\
• \hline
• \end{array}\)

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Definitions:

Causes

The reason or motive for an action or condition, leading to a certain outcome or effect.

Types Of Justice

Refers to the various bases of fairness, which include distributive justice (fairness in outcomes), procedural justice (fairness in the processes that lead to outcomes), and interactional justice (fairness in interpersonal interactions).

Employee's Reaction

The response or feedback of an employee to a particular situation or action taken by the employer, which can influence organizational atmosphere and performance.

Layoff

The temporary or permanent termination of employment of an employee or a group of employees for reasons such as cost-cutting or downsizing.