A company acquired on 1/1/N-5 a depreciable fixed asset B (on a straight-line basis over 20 years)
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Question:
A company acquired on 1/1/N-5 a depreciable fixed asset B (on a straight-line basis over 20 years) for a value of 1000K€. At the end of N-1, it carries out the revaluation according to the fair value of the fixed asset B of 1500K€
- 1) Recognize the revaluation difference at 31/12/N-1
2) What will be the value of the annual depreciation to be recorded for N for fixed asset B. At 31/12/N, the fair value of Asset B is €700K. - 3) Post the accounting entries to 31/12/N
- 4) What will be the value of the annual depreciation to be recorded from N+1 for fixed asset B.
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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