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Sir thank you but you did respond to my very question of how you calculated depreciation prior to revaluation , and I could not on that same page because it was closed to new replies
However, I do not know how you arrive at the depreciation of $800,000 and also the building valuation was $6000,000 – annual depreciation of $150,000 which will be &5,850,000. This was what apeeared on the SOFP while the $150,000 appeared on income statement of profit or loss.
Depreciation prior to revaluation was based on 10 years use out of a possible 50 years expected life applied to the original cost of $4,000,000 = $800,000
“the building valuation was $6000,000 – annual depreciation of $150,000 which will be &5,850,000. This was what apeeared on the SOFP while the $150,000 appeared on income statement of profit or loss.”
And this is EXACTLY what I wrote in my previous response!
So where’s the problem?
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