What is the depreciation of the building for 2005?What is the revaluation surplus on December 31, 2005? Capiz Company has the following information on January 1, 2005 relating to its landand building.LandBuildingAccumulated depreciation20,000,000450,000,00075,000,000There were no additions or disposals during 2005. Depreciation is computed usingstraight line over 15 years for building. On June 30, 2005, the land and building wererevalued as follows:Replacement cost35,000,000600,000,000Sound value35,000,000480,000,000LandBuilding

Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

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e depreciation of the building for 2005? What is the revaluation surplus on December 31, 2005?

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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Question

What is the depreciation of the building for 2005?

What is the revaluation surplus on December 31, 2005?

Capiz Company has the following information on January 1, 2005 relating to its land
and building.
Land
Building
Accumulated depreciation
20,000,000
450,000,000
75,000,000
There were no additions or disposals during 2005. Depreciation is computed using
straight line over 15 years for building. On June 30, 2005, the land and building were
revalued as follows:
Replacement cost
35,000,000
600,000,000
Sound value
35,000,000
480,000,000
Land
Building

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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