A freehold property with cost of RM3 million (land cost RM1.8 million) purchased on 1 January 2014 has been depreciated using straight line at 2% per annum assuming zero residual value for the building. It was revalued at RM5 million on 1 January 2020 (land valued at RM3 million). No revision on the original estimated useful economic life or residual value of the property is required. The company’s year-end is 31 December. Required: (i) Show the entries for revaluation on 1 January 2020. (ii) Calculate the depreciation of freehold property for year 2020.
A freehold property with cost of RM3 million (land cost RM1.8 million)
purchased on 1 January 2014 has been
annum assuming zero residual value for the building. It was revalued at RM5
million on 1 January 2020 (land valued at RM3 million). No revision on the
original estimated useful economic life or residual value of the property is
required. The company’s year-end is 31 December.
Required:
(i) Show the entries for revaluation on 1 January 2020.
(ii) Calculate the depreciation of freehold property for year 2020.
The depreciation method for a machine with cost of RM100,000 and
changed from
useful life be revised to 5 years and with residual value of RM10,000.
Required:
(i) Calculate depreciation charge for the machine for year 2020.
(ii) Determine the net book value of the machine at the end of year 2020.
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