Question 4 (6 marks) CCT owns a building which originally cost $200,000. The building is depreciated over 50 years on a straight-line basis with no residual value. The entity adopts a policy of revaluation for building. The building has so far had three valuations asfollows. At start of Year 2 valuation $230,000 At start of Year 4 valuation $260,000 At start of Year 6 valuation $300,000 Required: Calculate: (a) the annual depreciation charge for years one to six (3 marks) (b) the transfers to revaluation surplus through other comprehensive income in years 2, 4 and 6 (3 marks)

Question 4 (6 marks) CCT owns a building which originally cost $200,000. The building is depreciated over 50 years on a straight-line basis with no residual value. The entity adopts a policy of revaluation for building. The building has so far had three valuations as follows. At start of Year 2 valuation $230,000 At start of Year 4 valuation $260,000 At start of Year 6 - valuation $300,000 Required: Calculate: (a) the annual depreciation charge for years one to six (3 marks) (b) the transfers to revaluation surplus through other comprehensive income in years 2, 4 and 6