1) A company purchased a plant for $500,000 on 1 January 20X0. The plant was depreciated at 2.5 per cent per year by the straight line method. On 1 January 20X8, the plant was revalued to $700,000 with a remaining useful life of 50 years. Make the double entries for the transactions and prepare the extracts from the financial statements on 31/12/20x8. What are the written down values of the plant as at 31 December 20X7, the revaluation reserve as at 1 January 20X8 and the depreciation charge for the year ended 31 December 20X8?
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A company purchased a plant for $500,000 on 1 January 20X0. The plant was depreciated at 2.5 per cent per year by the straight line method. On 1 January 20X8, the plant was revalued to $700,000 with a remaining useful life of 50 years. Make the double entries for the transactions and prepare the extracts from the financial statements on 31/12/20x8. What are the written down values of the plant as at 31 December 20X7, the revaluation reserve as at 1 January 20X8 and the depreciation charge for the year ended 31 December 20X8.....!!
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