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Question 1. A property with a depreciable cost of ?5,600,000 with original residual value of ?200,000 after 15 years of useful life, had been revalued at a replacement cost of ?6,500,000 with a residual of ?50,000. About 1/3 of the asset's life had expired and the straight line method for depreciation is used. What is the age of the asset in years?
Question 2. A property with a depreciable cost of ?5,600,000 with original residual value of ?200,000 after 15 years of useful life, had been revalued at a replacement cost of ?6,500,000 with a residual of ?50,000. About 1/3 of the asset's life had expired and the straight line method for depreciation is used. Compute for the revaluation surplus and provide the correct journal entry.
Financial Statement Analysis and Preparation
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