Adelaide Ltd acquired a machine on 1 July 2007 at a cost of $100,000. The machine has an expected useful life of 5 years, and the company adopts the straight line basis of depreciation.
Adelaide Ltd measures the machine at fair value. Movements in fair values are as follows:
30 June 2008 $85,000 Remaining useful life: 4 years
30 June 2009 $60,000 Remaining useful life: 3 years
30 June 2010 $45,000
The company has a financial year ends on 30 June.
Required:Provide the journal entries used to account for this machine for all the relevant years ending 30 June, showing all necessary workings.