If a depreciable property is revalued at the middle of the current year, how is the depreciation expense for the year determined when the entity has a calendar year-end? a.Depreciation for the first half of the year is based on cost and for the second half on revalued amount. b.Depreciation for the year is based on the average of the depreciation based on cost and on revalued amount. c.Depreciation for the entire year is based on revalued amount. d.Depreciation for the entire year is based on cost.
If a depreciable property is revalued at the middle of the current year, how is the depreciation expense for the year determined when the entity has a calendar year-end? a.Depreciation for the first half of the year is based on cost and for the second half on revalued amount. b.Depreciation for the year is based on the average of the depreciation based on cost and on revalued amount. c.Depreciation for the entire year is based on revalued amount. d.Depreciation for the entire year is based on cost.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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If a depreciable property is revalued at the middle of the current year, how is the depreciation expense for the year determined when the entity has a calendar year-end?
a.Depreciation for the first half of the year is based on cost and for the second half on revalued amount.
b.Depreciation for the year is based on the average of the depreciation based on cost and on revalued amount.
c.Depreciation for the entire year is based on revalued amount.
d.Depreciation for the entire year is based on cost.
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