Hi Mike
Question extract from LSBF revision kit. Answer was $184,000 but your reply to a student on June 6, 2016 - MCQ–Asset was $212,000. Please help which answer is correct as I was confused.
Here is the question:
On 1 January 2010, Stirling purchased a building for $500,000, charging depreciation straight line over 25 years.
On 1 January 2012, the building was revalued to its fair value of $644,000 with no charge to its remaining useful life.
On 1 January 2014, the building was sold for $800,000.
What is the profit on disposal, to the nearest $'000, to be recorded in Stirling's statement of profit or loss for the year ended 31 December 2014, according to IAS 16 Property, Plant and Equipment?
Thank you
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Profit on Disposal
9y ago#1Hi, the answer from the information that you have given to me is $212,000
The difference from the apparent answer that I previously gave is $28,000 which happens to be one year's depreciation of the $644,000 over 23 years
I can only imagine that the dates given to me previously were incorrect ... or I made a mistake!
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