Depreciation.

Hi can someone please explain this to me!

Need to know date of purchase and depreciation policy!

I realize i missed the 20 year original life of the property at cost! Other than that there is no more information provided. This a Section A question.

Barb have you done the FR exam already? If you have, could you offer me some advice or thoughts on how i should approach the questions in each section. I would greatly appreciate it. Thanks!

It cost $12,000 and has a 20 year life. So annual depreciation is $12,000 / 20 = $600 Accumulated depreciation at 1 April is $3,600, so expired life is $3,600 / $600 = 6 years Revaluation takes place on 1 October, and that's 6 months into the seventh year As at 1 April, it has been depreciated for 6 years. Before revaluation there is a further 6 months' depreciation to charge (so $300 for that half year) and, as at 1 October it has been depreciated for 6 and a half years - thus leaving a remaining useful life of thirteen and a half years over which the revalued amount should be depreciated And that works out to be $10,800 / 13.5 = $800 for each year and, for the second half year from 1 October 20X4 to the year end that would be $400 That gives a total of $300 + $400 = $700 for the year ended 31 March 20X5 and a figure for the SoFP of $10,800 - $400 = $10,400 Does that make sense - I hope it helps In answer to your last post, no!

Thanks Barb!!!