Money Ltd acquired equipment on 1 July 2021 at $105,000. The equipment is depreciated using straight-line method and subsequently measured using the revaluation model.
Money Ltd expects the equipment to have 7 years useful life and a zero residual value.
The information below is available regarding the equipment in the following periods.
|Date||Fair Value||Cost to Sell||Value in Use|
|30 June 2023||$ 85,000||$ 2,000||$90,000|
|30 June 2025||$ 45,000||$ 3,000||$40,000|
Assuming indications of impairment exist on the dates above, please prepare the general journal entries (as per template below) to account for the equipment on the following dates:
- 30 June 2023
- 30 June 2025
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