- This topic has 1 reply, 2 voices, and was last updated 9 months ago by John Moffat.
- You must be logged in to reply to this topic.
ACCA Webinars: How to earn marks in Strategic Professional Exams. Learn more >>
20% off BPP Books for ACCA & CIMA exams - Get BPP Discount Code >>
Baxter Co purchased an asset for $100,000 on 1.1.X1. It had an estimated useful life of 5 years and it was depreciated using the straight line method. On 1.1.X3 Baxter Co revised the remaining estimated useful life to 8 years.
What is the carrying amount of the asset at 31.12.X3?
Answer is B.
He is finding revalued depreciation by dividing 60000/8=7500. Why are we not doing 60000/6 as two years have passed from X1-X2.
Because the question says that on 1.1.x3 the remaining useful life is change to 8 years. It is 8 years from 1.1.X3.