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31.12.x2 31.12.x1
$ ,000 $,000
Cost/valuation 720 595
Acc depreciation 340 290
Carrying amount 380 305Revaluation surplus 100 91
Some items of PPE were revalued during the yr.
To calculate the the tangible assets purchased, I used the carrying amount of every item to find the the purchased PPE.
But the book used their original cost of the items.
So please tell me professor if using the original cost is necessary and Carrying amount can not be used if the original cost is available.When assets are purchased it is the cost account that is debited with the cost of the assets purchased.
The carrying amount is the cost less the accumulated depreciation.
Have you watched my free lectures on this?
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