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hello Chris
Thank you for the lectures however while I was solving question from Kaplan exam kit, I came across this questionSmithson Co purchased a new building with a 50-year life for $10 million on 1 January 20X3.
On 30 June 20X5, Smithson Co moved out of the building and rented it out to third parties
on a short-term lease. Smithson Co uses the fair value model for investment properties.
At 30 June 20X5 the fair value of the property was $11 million and at 31 December 20X5 it
was $11.5 million.The question I have is…. While I used 2yrs 6mnths (1 Jan 20×3 – 30 June 20×5) for my depreciation (accumulated depreciation )….. They just used 6 months for their depreciation. Why did they use just 6 months.
Thank you
Hi,
I presume that this is the depreciation on the asset from the start of the year to when the change in use occurred, which would appear in the SPL.
Thanks
Hi,
I presume that this is the depreciation on the asset from the start of the year to when the change in use occurred, which would appear in the SPL.
Thanks
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