Reference no: EM133079364

Question - ARTHUR Company was incorporated on January 1, 2016 and follow PFRS in preparing its financial statements. In preparing its financial statements for the year ended December 31, 2018, ARTHUR Company used the following original cost and useful lives for its property, plant and equipment.

Original Cost Useful Life

Building 15,000,000 15 years

Machinery 10,500,000 10 years

Furniture 3,500,000 7 years

On January 1, 2019, the entity decided to review the useful lives of the property, plant and equipment. For this purpose, the entity hired external valuation experts who certified that the remaining useful lives of the property, plant and equipment at the beginning of 2019 are as follows:

Building 10 years

Machinery 7 years

Furniture 5 years

ARTHUR Company uses the straight line method of depreciation with no residual value.

Q1. What is the carrying amount or book value of the building on January 1, 2019?

Q2. What is the carrying amount or book value of the machinery on January 1, 2019?

Q3. What is the amount of depreciation of the building for the year 2019?

Q4. What is the amount of depreciation of the furniture for the year 2019?