Corporate Accounting – Depreciation and Fair Value

Madalena Ltd. purchased three machines on 15 July 2023 on credit. The bank asked for a yearly interest payment of 5%. In this purchase, GST of 10% is included. Machines A, B and C cost 35 %, 40% and 25% of the total amount of $200,000. These machines are depreciated using a straight-line method and their useful lives are 10, 12 and 14 years, respectively. Soon after the purchase, Madalena Ltd. decided to keep these machines under the revaluation model.

On that date, Madalena Ltd. received the following information about the fair values:

Machine A: 65000

Machine B: 95000

Machine C: 50000

Some months later, the fair values of these machines changed, these were collected on 31 Oct-23:

Machine A: 58000

Machine B: 80000

Machine C: 38000

Before the end of the financial year, these are the new fair values:

Machine A: 45000

Machine B: 101000

Machine C: 44000

Note that the useful lives of these assets have not changed since their purchase.

Required: Prepare the relevant journal entries from 15 July 2023 until the end of the financial year.

Corporate Accounting – Depreciation and Fair Value

We offer the best custom writing paper services. We have answered this question before and we can also do it for you.


We offer the bestcustom writing paper services. We have done this question before, we can also do it for you.

Why Choose Us

  • 100% non-plagiarized Papers
  • 24/7 /365 Service Available
  • Affordable Prices
  • Any Paper, Urgency, and Subject
  • Will complete your papers in 6 hours
  • On-time Delivery
  • Money-back and Privacy guarantees
  • Unlimited Amendments upon request
  • Satisfaction guarantee

How it Works

  • Click on the “Place Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
  • Fill in your paper’s requirements in the "PAPER DETAILS" section.
  • Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
  • Click “CREATE ACCOUNT & SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
  • From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.