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HI MIKE my question is here
A freehold property originally costing $100,000 with a 50-year life has accumulated depreciation to date of
$20,000. The asset is to be revalued to $130,000 at 31 December 20X7What will be the depreciation charge on the asset for the year ended 31.12.X8?
this is bpp revision kit question.It looks to me like $130,000 / 40 = $3,250
Does that agree with the BPP answer?
hi mike,
I appreciate for your effort, last night , I spent my whole night till morning to sort out this one, my effort made me at last, In this question , we had no date when we bought this property , the question just indicate that accumulated depn till to date is 20,000, i first find per annum depn by by dividing original cost 100,000/50 and get 2000 pa. now in question we given acctd depn to date , which is 20,000. I divided $20.000 by per annum depn which was $2000….(20,000/2000) which gave 10 years time gone, so rest life is 50-10= 40 years,
now its easy to get depn charge to revalued amount $130,000/40 years=$3250, which is answer,eventually I got wasting whole life, But I do appreciate for you kind hearing.I am EX BPP SHEPHERD BUSH STUDENT, thats why I used BPP book, no doubt your lecture are much simple and easy to understand topic…. once again thnx from my heart, takecare have a good day
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