A Machine Purchased by White Ltd Had a Cost of $670

question 36

Multiple Choice

A machine purchased by White Ltd 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)
• \[\begin{array} { | l | l | l | l | }
• \hline \mathrm { Dr } & \text { Accumulated depreciation -machine } & 120000 & \\
• \hline \mathrm { Cr } & \text { Machine } & & 120000 \\
• \hline & & & \\
• \hline \mathrm { Dr } & \text { Asset revaluation reserve } & 100000 & \\
• \hline \mathrm { Cr } & \text { Machine } & & 100000 \\
• \hline
• \end{array}\]
• B)
• \[\begin{array} { | l | l | l | l | }
• \hline \mathrm { Dr } & \text { Loss on revaluation of machine } & 220000 & \\
• \hline \mathrm { Cr } & \text { Machine } & & 220000 \\
• \hline
• \end{array}\]
• C)
• \[\begin{array} { | l | l | l | l | }
• \hline \mathrm { Dr } & \text { Accumulated depreciation-machine } & 120000 & \\
• \hline \mathrm { Cr } & \text { Machine } & & 120000 \\
• \hline & & & \\
• \hline \mathrm { Dr } & \text { Asset revaluation reserve } & 100000 & \\
• \hline \mathrm { Cr } & \text { Accumulated depreciation-machine } & & 100000 \\
• \hline
• \end{array}\]
• 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:

Coordinating Movements

The process of using different parts of the body together smoothly and efficiently.

Sensory Information

Data received by the sensory organs (e.g., eyes, ears, skin, nose, tongue) that is then processed by the brain to form perceptions of the environment.

Thalamus

A brain structure that acts as a relay station, processing and transmitting information to various parts of the brain.

Hypothalamus

A crucial brain structure involved in controlling various endocrine functions via the pituitary gland, playing key roles in the regulation of the autonomic nervous system and maintaining the body's homeostasis.