Valix Finacc vol 1 Problem 19-4

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 19 Problem 19-4

1. Annual depreciation on cost (9,000,000 / 25)                                                             360,000

    Age of asset (3,600,000 / 360,000)                                                                             10 years

2. Machinery                                                                                        6,000,000

            Accumulated depreciation (40% x 6,000,000)                                     2,400,000

            Revaluation surplus                                                                                         3,600,000

3. Depreciation (9,000,000 / 15)                                                             600,000

            Accumulated depreciation                                                                               600,000

4. Revaluation surplus                                                                            240,000

            Retained earnings (3,600,000 / 15)                                                                       240,000