Bears and Things Acquired a Toy-Stuffing Machine at a Cost

question 3

Multiple Choice

Bears and Things acquired a toy-stuffing machine at a cost of $150 000 on 1 July 2009.The machine had a useful life of 10 years and a residual value of $30 000.The benefits from the machine are expected to be derived evenly over its life.On 1 July 2011 the asset's fair value is $110 000 and the salvage value and useful life are expected to be unchanged (that is,there is 8 years of remaining life) .On 30 June 2009 the machine is sold for $60 000 cash.What are the journal entries required to record the depreciation for the year ended 30 June 2009 and the sale of the machine in accordance with AASB 116 if: (a) the revaluation is undertaken and (b) the revaluation is not recorded?

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Definitions:

Largest Net Recipient

A term typically used in finance and trade, referring to the entity or country that receives more resources, money, or benefits than it provides or contributes.

China

China is a country in East Asia, known for being the world's most populous country and having one of the oldest civilizations. It has a mixed socialist market economy and is a major player in global affairs.

Trickle-Down Theory

The assertion that stimulating overall economic growth will ultimately help the poor.

Economic Growth

An increase in the production of economic goods and services, compared from one period of time to another, and often measured by GDP (Gross Domestic Product).