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Asset Date of purchase cost residual value
Land 1 jan 2001 250000 250000
Building 1 jan 2001 250000 100000The property was revalued at 1 jan 2005 at 800000(450000 land,350000 building)
There was no change in residual values. Buildings are depreciated over 50 years
What is depreciation expense for the year ended 31 dec 2005?can you tell answer for this question and explain how to get the answer
You must have an answer to this question in the same book in which you found the question. You should ask about whatever it is in the answer that you are not clear about.
If you do not have an answer because it was set you as a test question, then we don’t do your homework for you (but tell me your answer and I will tell you if it is correct).
(Land is, of course, irrelevant because it is not depreciated. The building will be depreciated straight line over the remaining 46 years of its life, based on the revalued amout and the original residual value, since the question says this does not change.)
i got confused because of land now i did (350000-100000)/46 i got 5435 is it correct
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