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New plant costing $45m was acquired .In addition this plant cost $5 million to install and commission .No plant Is more than 4 year old
Ans is $50m * 10% = 5
I can’t understand from where 10% has come ??Neither can we without a bit more information from the question:
– What’s the expected life of the plant and its residual value?
– What was the carrying value of the other PPE before the addition?
– What date was the addition made and what is the reporting date?There is existing plant and new plant i did not understood the calculation of only new plant
Here’s the information about existing plant
Valuation was 150m
Depreciation (105)m
So the carrying amt is 45m
And existing plant in depreciated @20% on costAnd what date was the addition made and what is the reporting date?
If it was made halfway through the year then that will be where 10% is coming from.
Oh sorry reporting date was September and new plant was brought in April so now I understood thanks ma’am
From April to September its 6 months that’s why a 6 month depreciation was charged.
@ancila said:
Oh sorry reporting date was September and new plant was brought in April so now I understood thanks ma’amI’m a man, but you’re welcome…
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