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At 1 July 2014, chstar Ltd acquired the following non-current assets:
Equipment $100 000
Vehicles $30 000
They are in different classes of non-current assets and are to be measured at fair value. The expected useful lives of vehicles and equipment are 5 years and 10 years, respectively. At 30 June 2015, the fair values of both assets were assessed. The equipment had a fair value of $82 000, and the vehicles, $70 000. The remaining useful lives were assessed to be 8 years for equipment and 7 years for vehicles.
Required
Problem 1: Prepare the journal entries for Lobstar Ltd for the years ending 30 June 2015 and 2016.
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