Burchells Ltd Owns a Machine That Originally Cost $36,000

question 26

Multiple Choice

Burchells Ltd owns a machine that originally cost $36,000.It has been depreciated using the straight-line method for 3 years,giving an accumulated depreciation of $15,000 (the salvage value was estimated at $6,000 and the useful life at 6 years) .At the beginning of the current financial year its carrying value is therefore $21,000.It has been decided by the directors to revalue it to fair value,which is assessed to be $38,000.The salvage value and useful life are considered to be unchanged.What are the appropriate entries to record the revaluation and the depreciation expense for the current year (rounded to the nearest dollar) ?

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Definitions:

Stock Pots

Large pots typically used in kitchens for boiling or simmering large volumes of liquid or for making stocks from bones and vegetables.

Large Servings

Portions of food or drink that are significantly larger than the standard or regular serving size.

Gallon Conversion

The process of converting gallons, a unit of liquid volume, to other units of measurement like liters or cubic meters.

Finishing Touches

The final details or actions that complete and perfect a project or product.