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Here’s the qs:
SPF at 31/12/07
stadium cost 1,500,000
Depreciation 450,000Depreciation has been provided at 2% on the straight line basis.
The stadium is revalued on 30/6/08 to $1,380,000. There is no change in its remaining future useful life.
What is the depreciation charge for the year ended 31/12/x8?I’ve looked at the answer but it was very confusing. I understand that the depreciation would be 15,000 but I don’t understand where the next depreciation: (1,380,000/34.5)x(6/12)
where does the 34.5 years came from?1 500 000 x 2/100 = 30000 per year depreciation
1 500 000: 30000= 50 year
450 000: 30000= 15 year
revaluation took place in the middle of 2008 year so 15+0.5=15.5
remaining useful life 50-15.5=34.531-12-07-30-06-08=1.5million*2%*6/12=15000
1 year depreciation-30,000
450,000/30,000=15 years
The stadium is revalued on 30/6/08 to $1,380,000
15+1/2 year-15.5 years
50-15.5=34.5 years
30.06-08-31/12/08=1380,000/34.5 years*6/12@choonfah87 said:
30.06-08-31/12/08=1380,000 * 34.5 years*6/1230.06-08-31/12/08=1,380,000 / 34.5 years*6/12
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