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Depreciation revaluation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Depreciation revaluation

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.
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  • Author
    Posts
  • November 11, 2016 at 7:34 am #348428
    aamir12
    Member
    • Topics: 18
    • Replies: 13
    • ☆

    banter co purchased on office building on 1 january 2001. the building cost was $1,600,000 and this was depreciated by the straight line method 2% per year, assuming a 50years life and nil residual value . The building was re-valued to $2,250,0000 on 1 january 2006. The useful life was not revised. The company’s financial year on 31 december 2006.

    What is the balance on the revaluation reserve at 31 december 2006?

    A $650,000
    B $792,000
    C $797,000
    D $810,000

    November 11, 2016 at 2:57 pm #348478
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54704
    • ☆☆☆☆☆

    Do not set test questions here and expect an answer.

    You must have an answer in the same book in which you found the question, and so you should ask about whatever in the answer it is that you do not understand.

    (If you do not have answers in your book then you are wasting your time with it – you should use a Revision Kit from one of the ACCA approved publishers. The contain exam standard questions, together with answers and explanations.)

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