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land and building value/cost $120000
depreciation charge buildings 4% per annum straight line basis
this should be charged to admin expnses..
land which in non depreciable is included in the trial balance at a value of $40000000 at year end 30 june 2001 a surveyor valued it at $54000000… accumulated deprecation at july.20×0 $22500 .. revaluation reserve at 1july 20×0 $10000
year end date is 30june 2001how much depreciation charge to the admin expenses at the year end ?
sol
building cost $120000 x 4%=4800 but this is wrong in my kaplan exam kit correct answere is 3200 … but how? please explain it to meLand and buildings are $120,000,000 (not 120,000).
This includes land of $40,000,000.
So the buildings are $80,000,000, and it is only buildings that are being depreciated at 4%. (We do not depreciate land anyway)
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