1.Prepare the journal entry/ies to illustrate how Chuck Limited should account for the write-off of the factory building for the reporting period ending 31 March 2017.

2.What amount will be disclosed as 'Depreciation expense - Buildings' in Chuck Limited's Statement of comprehensive income for the year ending 31 March 2017?

Disposal of Asset The following trial balance extract has been extracted from Chuck Limited's accounting records at 31 March 2017: Buildings 4 986 100 Buildings - accumulated depreciation - 1 April 2016 Property, plant and equipment - at cost Property, plant and equipment - accumulated depreciation - 31 March 2017 977 850 2 968 750 329 760 On 1 November 2016 a factory building that originally cost $11 246 800 and with a carrying amount of $1 281 200 was severely damaged in a flood and written-off. Any gains of losses on capital items are not subject to taxation. Buildings are depreciated on the straight-line basis at 8.5 per cent per annum. As the building was underinsured, the insurance company only paid Chuck Limited $1 573 900. Required: 1 2 Prepare the journal entry/ies to illustrate how Chuck Limited should account for the write-off of the factory building for the reporting period ending 31 March 2017. What amount will be disclosed as 'Depreciation expense - Buildings' in Chuck Limited's Statement of comprehensive income for the year ending 31 March 2017