Gusna Co purchased a building on 31 December 20X1 for $750,000. At the date of acquisition, the useful life of the building was estimated to be 25 years and depreciation is calculated using the straight-line method. At 31 December 20X6, an independent valuer valued the building at $1,000,000 and the revaluation was recognised in the financial statements. Gusna’s accounting policies state that excess depreciation arising on revaluation of non-current assets can be transferred from the revaluation surplus to retained earnings. What is the depreciation charge on the building for the year ended 31 December 20X7?
A、$40,000
B、$50,000
C、$30,000
D、$42,500
A、$40,000
B、$50,000
C、$30,000
D、$42,500
【参考答案及解析】
The depreciation charge is calculated based on the remaining useful life at the date of therevaluation： 1,000,000/20 years = $50,000
The depreciation charge is calculated based on the remaining useful life at the date of therevaluation： 1,000,000/20 years = $50,000