Click here to exit full screen mode. TESTS & QUIZZES FINAL ASSESSMENT: SECTION B Table of Contents Part 17 of 22 - Question 17 Question Progress Question 17 of 22 3 Points Kind Regards (KR) is a restaurant with a year-end of 30 June. KR owns the building in which it operates. The building had a carrying amount of R4.5 million on 30 June 2020. Because the restaurant is situated in an exclusive area, the fair value of the building amounted to R5.1 million on 30 June 2020. Ms. Jones, the owner, made the following statement: "Since the market value of the building is much greater than the carrying amount, the building does not need to be depreciated". Do you agree or disagree with the statement made by Ms. Jones? A. I agree because the building can be sold for a higher amount at any moment. OB. I disagree, because there is a cost of using the building which needs to be accounted for through depreciation. OC. I agree because depreciation stops when an asset's fair value exceeds its carrying amount. OD. I agree because the owner of any business may do as he pleases. OE. I disagree because depreciation is a cash payment and cannot be ignored. Reset Selection Previous NEXT Save Exit