Peters Ltd Has a Machine That Originally Cost $20 000

question 74

Multiple Choice

Peters Ltd has a machine that originally cost $20 000 and has accumulated depreciation of $5000.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) using the gross method to record the revaluation?

• A)
• \[\begin{array} { | l | l | r | r | }
• \hline \mathrm { Dr } & \text { Accumulated depreciation-machine } & 5000 & \\
• \hline \mathrm { Cr } & \text { Machine } & & 5000 \\
• \hline & & & \\
• \hline \mathrm { Dr } & \text { Machine } & 15000 & \\
• \hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 15000 \\
• \hline
• \end{array}\]
• B)
• \[\begin{array} { | l | l | r | r | }
• \hline \mathrm { Dr } & \text { Machine } & 15000 & \\
• \hline \mathrm { Cr } & \text { Accumulated depreciation } & & 5000 \\
• \hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 10000 \\
• \hline
• \end{array}\]
• C)
• \[\begin{array} { | l | l | l | l | }
• \hline \mathrm { Dr } & \text { Machine } & 10000 & \\
• \hline \mathrm { Cr } & \text { Accumulated depreciation } & & 2500 \\
• \hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 7500 \\
• \hline
• \end{array}\]
• D)
• \[\begin{array} { | l | l | r | r | }
• \hline \mathrm { Dr } & \text { Accumulated depreciation-machine } & 5000 & \\
• \hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 5000 \\
• \hline & & & \\
• \hline \mathrm { Dr } & \text { Machine } & 15000 & \\
• \hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 15000 \\
• \hline
• \end{array}\]

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Complexity Leadership Theory

An approach that views leadership as a complex interactive dynamic that emerges from the interactions between individuals, rather than a series of linear cause-effect actions.

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