G Ltd started its operations in Feb 2016. At that date it acquired the following assets:

Asset type	Cost (NZD)	Estimated Economic life	Depreciation Method	Scrap value
Land	750,000	Indefinite	NA	NA
Building	300,000	35 years	SLM	13,000
Machine	82,000	25 years	Units of prod	2,500
Truck	45,000	7 years	Sum of digits	1,500
Total	1,177,000

Additional information:

• The companys financial year end is on the 31st of December each year.
• The companys building was revalued at the end of 2018 to NZD 350,000. The revised/remaining economic life at end of 2018 was estimated to be 30 years. The depreciation method remained unchanged following the revaluation. The revised scrap value for the building was NZD 15,000.
• The machine has a maximum production capacity of 820,000 units of product G. The companys forecast production (units) is 120,000 (2016), 165,000 (2017), 150,000 (2018), 175,000 (2019) and 210,000 (2020).
• The company uses the sum of digits method to depreciate its truck. This truck was disposed at the end of 2020 for a price of NZD 7,500.
• A full years depreciation is charged in the year of acquisition of an asset.

Required:

1. Calculate the gain or loss on revaluation of the building.

Prepare the depreciation schedules for the building, machine and truck for a period of five years (i.e., from 2016 to 2020).

You should use the following format:

Year

Asset

Cost (NZD)

Depreciation expense (NZD)

Accumulated depreciation (NZD)

NBV (NZD)

Fair value (if applicable) (NZD)

Revaluation surplus (if applicable) (NZD)

1. Prepare extracts from the Statement of Financial Position of G Ltd for the five years from 2016 to 2020. You must clearly indicate each asset and its related cost, accumulated depreciation and NBV. Further, you must provide the total for each year.

The following format should be used:

Non-current asset

Reporting entity Financial statement Reporting period

Reporting entity Financial statement Reporting period

Reporting entity Financial statement Reporting period

Reporting entity Financial statement Reporting period

Reporting entity Financial statement Reporting period

2. Calculate the total annual depreciation expense for the five financial years from 2016 to 2020.
3. Provide the journal entries for the revaluation of the building.

Briefly compare how the three depreciation methods used by the reporting entity impact the related assets annual depreciation expense over time.