Question
A company had been renting out a vacant property for many years under the fair value model. At 1 January 20X1, the property had a
A company had been renting out a vacant property for many years under the fair value model. At 1 January 20X1, the property had a fair value in the financial statement of 12 million with remaining expected useful life of 15 years. On 1 July, the company decided to move back into the property following the end of the rental agreement with the tenants. At this date the asset had a fair value of 14 million and a remaining useful life of 14 years. What amount should be recorded in the Statement of Profit or Loss with regard to this asset for the year end 31 December 20X1?
- A
Revaluation gain of 2 million
Depreciation of 0.5 million
Revaluation gain of 2 million , , Depreciation of 0.5 million ,
- B
Revaluation gain of 2 million
Depreciation of 1.3 million
Revaluation gain of 2 million , , Depreciation of 1.3 million,
- C
Revaluation gain of 2.8 million
Depreciation of 1.3 million
Revaluation gain of 2.8 million , , Depreciation of 1.3 million ,
- D
Revaluation gain Nil
Depreciation of 0.8 million
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