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Question - In the 30 June 2020 Plant (at cost) 500,000 Accumulated Depreciation (150,000) 350,000 annual report of Sydney Ltd reported the following:
Plants are measured using the cost model, and depreciated on a straight-line basis over a 10-year period. At 30 June 2020, Plant was assessed to have a fair value of $360,000 with an expected useful life of 6 years. At 30 June 2021, Plant was assessed to have a fair value of $250,000.
Required - Prepare the journal entries during the period 30 June 2020 to 30 June 2021 in relation to the Plant.
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