On 1 January 20x4, PTP Bhd purchased a building costing RM30 million, estimated useful life 20 years,
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Question:
On 1 January 20x4, PTP Bhd purchased a building costing RM30 million, estimated useful life 20 years, scrap value of RM2 million. PTP decided not to depreciate it in 20x4. this was discovered when the financial statement for 20x5 were being finalize. Assume tax rate to be 25%. Retained profit brought forward as at 1 January 20x5 was RM45 million.
Required
Discuss the accounting treatment.
Related Book For
Intermediate Accounting
ISBN: 978-0071339476
Volume 1, 6th Edition
Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I
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