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