RECOMMENDED!!ACCOUNTING 602-Liberty Limited acquired an item of machinery

  

Liberty Limited acquired an item of machinery that cost $42,000 on 1 April 2013. At that date the useful life of the machinery was estimated to be 7 years. On 1 April 2014, the electric motor that drives the conveyor belt seized and had to be replaced. A new engine that cost $24,000 was installed on the same date. It was estimated that at the date of acquisition the original motor was worth $21,000. The estimated useful life of the new motor is 4 years.RequiredPrepare journal entries to record depreciation for the item of machinery for the years ending 31 March 2014 and 31 March 2015. Show all workings.

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