June 12 William (a)

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February 26, 2018 at 5:56 am #438953
sss111
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Part (a) : When calculating the depreciation of building, why don’t we take the carrying amount of $3.5m and divide it by 20 years ? Instead, they considered the sales proceeds.
March 4, 2018 at 7:38 pm #440182
P2-D2
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Hi,

The building is now held at $5 million as it was derecognised at its carrying value and then recognised at its fair value, the proceeds. It is then depreciated over the 20 years.

Thanks
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