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Homework answers / question archive / On 1 July 2018, Geller Ltd purchased a vehicle
On 1 July 2018, Geller Ltd purchased a vehicle. The vehicle cost $150
000 cash with a zero residual value and useful life of 5 years.
On 30 June 2019, Geller Ltd changed its method of measurement of PPE from the cost model to the revaluation model. They hired an independent valuer who assessed the value of the vehicle to be $135 000 with a remaining useful life of 4.5 years and a zero residual value.
On 30 June 2020, the vehicle was revalued again to its fair value of $85 000 with a remaining useful life of 3 years and residual value of $2 000.
The company uses straight-line depreciation method for depreciating all its PPE. Tax rate is 30%. The financial year ends on 30 June. Prepare journal entry from 2018 to 2020( revaluation model)
