- January 2, 2022 at 9:27 am #645175
Good day Sir,
This refers to the exam prep question at the end of Chapter 7 in the study text for FR exam.All figures are expressed as ($ ‘000s).
In the workings for office building I see that the depreciation is calculated as $500 and would like to know how the figure was arrived at.
I assumed that if the useful life has been changed to 10 years in the middle of the acc period and the Carrying value of the asset is now $14, 000 then the depreciation for the year would be as follows (14, 000/10 yrs x 6/12) = $ 750.
In the schedule of adjustments to the retained earnings, I see that the 2nd depreciation is written as $750 so I’m a bit confused.
Thanks in advance.January 2, 2022 at 9:28 am #645176
Just found out that i need to use the Ask the Tutor forums.January 4, 2022 at 10:07 am #645272f6aliMember
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The question you are referring to is been updated, as mentioned by the Tutor in following thread:January 4, 2022 at 5:07 pm #645294
OK, thank you.
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