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An entity purchased property for RM6 million on 1 July 2015. The land element of the purchase was RM1 million. The expected life of the building was 50 years and its residual value nil. On 30 June 2017, the property was revalued to RM7 million, of which the land element was RM1.24 million and the buildings RM5.76 million. What will be the carrying value of the property as at 30 June 2019? A. RM7,000,000 B. RM6,880,000 C. RM6,000,000 D. RM6,760,000

An entity purchased property for RM6 million on 1 July 2015. The land element of the purchase was RM1 million. The expected life of the building was 50 years and its residual value nil. On 30 June 2017, the property was revalued to RM7 million, of which the land element was RM1.24 million and the buildings RM5.76 million. What will be the carrying value of the property as at 30 June 2019? A. RM7,000,000 B. RM6,880,000 C. RM6,000,000 D. RM6,760,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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An entity purchased property for RM6 million on 1 July 2015. The land element of the purchase was RM1 million. The expected life of the building was 50 years and its residual value nil. On 30 June 2017, the property was revalued to RM7 million, of which the land element was RM1.24 million and the buildings RM5.76 million. What will be the carrying value of the property as at 30 June 2019? A. RM7,000,000 B. RM6,880,000 C. RM6,000,000 D. RM6,760,000
Transcribed Image Text:An entity purchased property for RM6 million on 1 July 2015. The land element of the purchase was RM1 million. The expected life of the building was 50 years and its residual value nil. On 30 June 2017, the property was revalued to RM7 million, of which the land element was RM1.24 million and the buildings RM5.76 million. What will be the carrying value of the property as at 30 June 2019? A. RM7,000,000 B. RM6,880,000 C. RM6,000,000 D. RM6,760,000
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