Problem
La Tea purchased an industrial bubble tea machine for $28,600 (GST Inclusive) on April 1 2019. The bubble tea machine has a useful life of 10 years and a residual value of $8,000. LaTe depreciates all its bubble tea machines using the straight-line method of depreciation and uses the cost model for all of its non-current assets.
On June 30, 2020, following a significant decline in customer visits because of the pandemic, LaTe had to test the bubble tea machine for impairment. Its fair value less cost to sell was estimated to be $19,200 and its value in use to be $21,300. The asset was expected to last 8 years and have a residual value of $5,000
By June 30, 2022, the customer visits picked up again and the management estimated the recoverable amount of the bubble tea machine to be $23,800.
Task
Record depreciation expense entries on June 30 of 2019, 2020, and 2022, bubble tea machine impairment (if any) on June 30, 2020, and bubble tea machine impairment reversal (if any) on June 30, 2022. GST needs to be accounted for.