At 1 July 2014, Lobstar Ltd acquired the following non-current assets: Equipment $100 000 Vehicles $80 000 They are in different classes of non-current assets and are to be measured at fair value

Accounting Oct 07, 2020

At 1 July 2014, Lobstar Ltd acquired the following non-current assets:

Equipment $100 000

Vehicles $80 000

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

Prepare the journal entries for Lobstar Ltd for the years ending 30 June 2015 and 2016

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