(Answered) Question - on 1 july 2011 aaron ltd purchased equipment for

Accounting

QUESTION - On 1 July 2011, Aaron Ltd purchased equipment for $4,000,000. The company uses the revaluation model to account for equipment and depreciates it over its estimated useful life of 4 years using the straight line method with a zero residual. Indicators of impairment and/or reversal of impairment existed at 30 June 2012, 2013 and 2014.

The information below shows the asset values at various dates.

Date	Fair Value	Cost to Sell	Value in Use
30/06/2012	2,910,000	50,000	2,950,000
30/06/2013	1,940,000	80,000	1,880,000
30/06/2014	1,140,000	40,000	1,160,000

Prepare general journal entries to account the equipment from 1 July 2011 to 30 June 2014 in accordance with the requirements of AASB 116 and AASB 136. Please show all workings.

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