Question
A business purchased some land and buildings on 1 January 2011 for Rs.800million (land Rs.250 million and buildings Rs.550 million). The buildings are to be
A business purchased some land and buildings on 1 January 2011 for Rs.800million (land Rs.250 million and buildings Rs.550 million). The buildings are to be depreciated over a period of 50 years. On 1 January 2015 the land and buildings were revalued to Rs. 1,500 million (land Rs.400 million and buildings Rs. 1,100 million). At this date the buildings were believed to have a remaining useful life of 40 years.
Required:
What is the original depreciation charge for the buildings and the revised charge from 1 January 2015?
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Fundamentals of Engineering Economics
Authors: Chan S. Park
3rd edition
132775425, 132775427, 978-0132775427
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