Mammed purchased a building on 1 July 2012 for 500,000 AZN. At the date of acquisition, the useful life of the building was estimated to be 20 years and depreciation is calculated using the straight - line method. At 1 September 2015, an independent valuer valued the building at 350,000 AZN and the revaluation was recognised in the financial statements. Mammeds accounting policies state that excess depreciation arising on revaluation of non - current assets can be transferred from the revaluation surplus to retained earnings. Financial year end is 31 December. Based on information provided calculate/provide: 1. Revaluation surplus arised on 1 September 2015 2. Depreciation charge for the year ended 31 December 2015 3. Calculate exceed depreciation for the year ended 2015
Mammed purchased a building on 1 July 2012 for 500,000 AZN. At the date of acquisition, the useful life of the building was estimated to be 20 years and depreciation is calculated using the straight - line method. At 1 September 2015, an independent valuer valued the building at 350,000 AZN and the revaluation was recognised in the financial statements. Mammeds accounting policies state that excess depreciation arising on revaluation of non - current assets can be transferred from the revaluation surplus to retained earnings. Financial year end is 31 December. Based on information provided calculate/provide: 1. Revaluation surplus arised on 1 September 2015 2. Depreciation charge for the year ended 31 December 2015 3. Calculate exceed depreciation for the year ended 2015
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Mammed purchased a building on 1 July 2012 for 500,000 AZN. At the date of acquisition, the useful life of the building was estimated to be 20 years and depreciation is calculated using the straight - line method. At 1 September 2015, an independent valuer valued the building at 350,000 AZN and the revaluation was recognised in the financial statements. Mammeds accounting policies state that excess depreciation arising on revaluation of non - current assets can be transferred from the revaluation surplus to retained earnings . Financial year end is 31 December. Based on information provided calculate/provide:
1. Revaluation surplus arised on 1 September 2015
2. Depreciation charge for the year ended 31 December 2015
3. Calculate exceed depreciation for the year ended 2015
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