At 31 December 2014 Q a limited liability company, owned a building that had cost $2,770,000 on 1 January 2005. It was being depreciated at 2% per year.
On 31 December 2014 a revaluation to $ was recognised. At this date the building had a remaining useful life of 40 years.
What is the balance on the revaluation surplus at 31 December 2014 and the depreciation charge in the statement of profit or loss for the year ended 31 December 2015?
SUGGESTED SOLUTIONS
| $ | |
| COST OF NON-CURRENT ASSET | 2,770,000 |
| LESS ACCUMULATED DEPRECIATION | (554,000) |
| CARRYING VALUE OF NON-CURRENT ASSET | 2,216,000 |
| REVALUATION OF THE ASSET | 4,155,000 |
| REVALUATION SURPLUS $ | 1,939,000 |
| COST OF REVALUED NON-CURRENT ASSET $ | 4,155,000 |
| USEFUL LIFE REMAINING IN YEARS $ | 40 |
| ANNUAL DEPRECIATION FOR 31 DECEMBER 2015 $ | 103,875 |
To0. do the same topic again in ACCA F3 Non current Assets 07