Gupta Co purchased a building on 30 June 19X9 for $250,000. At the date of purchase, Gupta estimated the useful life of the building to be 35 years. On 30 June 20X4, the building was revalued to $340,000 and there was no change in its useful life. On 31 December 20X5, Gupta Co sold the property for $450,000. The company’s policy is to depreciate property on a straight line basis with a proportionate charge in the years of acquisition and disposal. What is the profit on disposal to be recognised in the statements at 30 June 20X6?
Gupta Co purchased a building on 30 June 19X9 for $250,000. At the date of purchase, Gupta estimated the useful life of the building to be 35 years. On 30 June 20X4, the building was revalued to $340,000 and there was no change in its useful life. On 31 December 20X5, Gupta Co sold the property for $450,000. The company’s policy is to depreciate property on a straight line basis with a proportionate charge in the years of acquisition and disposal. What is the profit on disposal to be recognised in the statements at 30 June 20X6?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Gupta Co purchased a building on 30 June 19X9 for $250,000. At the date of purchase, Gupta estimated the useful life of the building to be 35 years.
On 30 June 20X4, the building was revalued to $340,000 and there was no change in its useful life.
On 31 December 20X5, Gupta Co sold the property for $450,000.
The company’s policy is to
What is the profit on disposal to be recognised in the statements at 30 June 20X6?
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