On 1 April 1991, a business which prepares annual accounts to 31 March acquires freehold property for £100,000. The cost of the property can be divided into land £30,000 and buildings £70,000. The business estimates that the buildings have a useful life of 50 years with a residual value of £nil and it is decided to depreciation the buildings (but not the land) using the straightline method.

On 1 April 1998, the property is revalued at £140,000, which can be divided into land £75,000 and buildings £65,000. It is decided to incorporate this revaluation into the accounts of the business. The estimates of the buildings’

useful life and residual value remain unchanged.

Required:

Calculate the depreciation charge which should be shown in the profit and loss account for the years to 31 March 1992 through to 1999,