Question

Esoteric owns a retail unit in central Springfield. It bought the property 25years ago for $100,000, depreciating it over 50 years on a straight-line basis. At the start of 20X6 the entity decides to revalue the unit to$800,000. The unit has a remaining useful life of 25 years at the date of the revaluation. It is the entity’s policy to make the annual transfer of excess depreciation between revaluation surplus and retained earnings within equity. Calculate amount to be debited to accumulated Depreciation . *
1 point
$50,000
$8,00,000
$7,50,000
$7,00,000​

Answer 1

Esoteric owns a retail unit in central Springfield. It bought the property 25years ago for $100,000, depreciating it over 50 years on a straight-line basis. At the start of 20X6 the entity decides to revalue the unit to$800,000. The unit has a remaining useful life of 25 years at the date of the revaluation. It is the entity’s policy to make the annual transfer of excess depreciation between revaluation surplus and retained earnings within equity. Calculate amount to be debited to accumulated Depreciation . *

1 point

$50,000

$8,00,000

$7,50,000✔️

$7,00,000