Company U uses current values for its non-current assets in its financial accounts. Company U bought a block of flats for £22.8 million 10 years ago. The residual value was estimated at £1.9 million and the useful life of the block of flats was estimated at 50 years Depreciation has been charged on a straight-line basis At the start of this year, a surveyor revalued the block of flats for accounting purposes to a current value £28.0 million with an estimated future useful life of 40 years and a residual value of £1.9 million. Depreciation is still to be charged on a straight-line basis. What is the depreciation charge on the block of flats for this year?
Company U uses current values for its non-current assets in its financial accounts. Company U bought a block of flats for £22.8 million 10 years ago. The residual value was estimated at £1.9 million and the useful life of the block of flats was estimated at 50 years Depreciation has been charged on a straight-line basis At the start of this year, a surveyor revalued the block of flats for accounting purposes to a current value £28.0 million with an estimated future useful life of 40 years and a residual value of £1.9 million. Depreciation is still to be charged on a straight-line basis. What is the depreciation charge on the block of flats for this year?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 7RE: Bliss Company owns an asset with an estimated life of 15 years and an estimated residual value of...
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Company U uses current values for its non-current assets in its financial accounts.
Company U bought a block of flats for £22.8 million 10 years ago.
The residual value was estimated at £1.9 million and the useful life of the block of flats was estimated at 50 years
At the start of this year, a surveyor revalued the block of flats for accounting purposes to a current value £28.0 million with an estimated future useful life of 40 years and a residual value of £1.9 million.
Depreciation is still to be charged on a straight-line basis.
What is the depreciation charge on the block of flats for this year?
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