Valix Finacc vol 1 Problem 19-3

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 19 Problem 19-3

1. Annual depreciation on cost (750,000 / 5)                                                     150,000

    Original life (3,000,000 / 150,000)                                                                                20 years

2. Equipment                                                                                       1,800,000

Accumulated depreciation                                                                               450,000

            Revaluation surplus                                                                                         1,350,000

3. Depreciation           (4,800,000 / 20)                                                    240,000

            Accumulated depreciation                                                                               240,000

4. Revaluation surplus                                                                              90,000

            Retained earnings (1,350,000 / 15)                                                                       90,000