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Warren Ltd acquires a bus on 1 July 20X1for $300 000. The bus is expected to have a useful
life of 7 years, after which time it will be towed out to sea and sunk to make an artificial reef
for marine life (after all oils and solvents have been removed). The straight-line method of
depreciation is used. On 1 July 20X3 the bus is revalued to $250 000 and its useful life is
reassessed with a remaining useful life of 6 years. On 1 July 20X4, it is unexpectedly sold for
$220 000.
Required
Provide the journal entries for the revaluation on 1 July 20X3 and the subsequent sale on
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