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A company’s finansial statements for the year to 31 December 20X5 included a building at its carrying amount of 280’000. At the date , it was half-way through useful life of 50 years. On 1 January 20×6 it was revalued to 360’000. The company has a policy of straigh-line depreciation. There was no amendment to the estimate of the building’s remeining useful life.
What figure will appear for accumulated depreciation in the statement of financial position as at 31 December 20×6.
a-291200
b-14400
c-294400
d-11200I’m answered 294’400, but i don’t know is correct answer. Help me please 🙂
Why are you attempting questions for which you do not have answers? That achieves nothing, and you should be using a Revision Kit from one of the ACCA approved publishers – they have answers and explanations!!
The depreciation for 20X6 is 360,000/25 = 14,400, and therefore this is the accumulated depreciation as at 31 December 20X6. (The previous carrying amount is of no relevance.)
Do watch my free lectures on this. The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
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