Cars and Trucks Limited Owns an Engine Testing Machine Which

question 19

Multiple Choice

Cars and Trucks Limited owns an engine testing machine which was purchased for $120,000.After 3 years of use the machine had accumulated depreciation of $58,560 but was revalued to $80,000.Two years later the machine was sold for $60,000 and had accumulated depreciation at the time of sale of $36,800.What journal entries would be required to record the sale of the machine in accordance with AASB 116 requirements?

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Definitions:

Kanbans

Signaling systems used within manufacturing and inventory management to regulate the flow of products based on the demand and supply capacity.

JIT

Just-in-time refers to a strategy that aims to improve a business's return on investment by reducing in-process inventory and associated carrying costs.

Lean Operations

A business methodology that focuses on minimizing waste and maximizing value in the production process through continuous improvement and responding to customer demands.

Work Centre

A specific location where work is performed, characterized by certain capabilities, resources, and capacities.