#2. Depreciation Charge

Question.

Mabel bought a factory on 1 January 20X3 for $180,000. It is depreciation monthly on a straight line basis over 50 years. On 1 July 20X6 the factory was revalued to $223,200.

What should the depreciation charge be for the year ended 31 December 20X6?

Answer

Depreciation for six months 1 January 20X6 to 30 June 20X6

180,000/50 years = 3,600 x 6/12 = 1,800

Therefore,

223,200/ 46.5 years = 4,800 x 6/12 = 2,400

Total depreciation charge for 20X6 is 1,800 + 2,400 = 4,200

Can you explain how they got 46.5 years …. I getting 46.4 years