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b)In 34.6 question of BPP revision kit
The estimation of the remaining useful life is done in the year end of 31/Dec/20X3. So the depreciation should be calculated until 31/Dec/20X3 and from the year 1/Jan20X4 the depreciation should be calculated according to the revised useful life. So the answer should be:
15000*3= 45000
160000-45000= 115000
115000-40000= 75000
75000/3=25000
So the carrying amount should be 115000-25000= 90000
Am I right?So to this question you have previously replied. And you said we have to calculate the depreciation for revalued asset from the year 31/Dec/20X3.
But in question 19.3 task 2 in BPP revision kit, the depreciation for the revalued building ($1800000) is not calculated. What is the difference?
There is no revaluation in question 34.6 and the answer in the Revision Kit is correct at 107,500.
The reason is explained in my previous answer to the same question: https://opentuition.com/topic/bpp-14/The answer to question 19.3 task 2 is wrong because they have not brought the revaluation into the financial statements and they should have done so.
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