13 and 14 thanks

13. An entity purchased an asset on 1 January 2006 for $10m. The asset has a useful life of 10 years and uses the straight-line method of depreciation. On 1 January 2009, the asset's useful life is revised to add a further three years to it. The asset has no residual value. The depreciation charge for the year to 31 December 2009 should be a. $1m b. $700,000 c. $769,230 d. $538,461 14. An entity has a policy of revaluing its PPE. An asset cost $15m on 1 January 2008 , has a useful life of 15 years and is depreciated on a straight-line basis to a zero residual value. The value of the asset at 31 December 2008 was $14.5m. At 31 December 2009, the market value of the asset was $12.5m. The accounting entry at 31 December 2009 would be: a. Depreciation $1m to income statement, fall in value of $0.5m charged to revaluation reserve and $0.5m to the income statement b. Depreciation $1.04m to income statement, fall in value of $0.5m charged to revaluation reserve and $0.46m to the income statement c. Depreciation $1m to income statement, fall in value of $0.96m to the income statement d. Depreciation $1.04m to income statement fall in value of $096m charged to