Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Anglesea Ltd constructed a building in beginning of financial year 2014 for a cost of $960 000. The building was expected to have a useful

image text in transcribed
Anglesea Ltd constructed a building in beginning of financial year 2014 for a cost of $960 000. The building was expected to have a useful ife of 20 years after which financial year (5 years after the building was constructed) the roof of the building was blown away and a replacement was constructed at a cost of $200 000. It was predicted that by replacing the building's roof its expected useful life would be extended a further 20 years after the end of the 2018 financial year REQUIRED culate the depreciation cost for the 2017, 2018 and 2019 financial years (no decimal) Additional information In relation to the expected demolition costs, paragraph 16 of AASB 116 states: The cost of an item of property, plant and equipment comprises: (0) its purchase price, including import duties and non-refundable purchase taxes, affer deducting trade discounts and rebates (b) any costs directy attributable to bringing the asset to the location and condition necessary for t to be capable of operating in the manner intended by nagement; and the initial estimate of the costs of the site on which it is located, the obligation for which an entity incurs either the item is acquired or as a consequence of having used the item during a particular period for purposes other than to produce inventories during that period

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing An International Approach

Authors: Wally J. Smieliauskas, Kathryn Bewley

6th edition

978-0070968295, 9781259087462, 978-0071051415

More Books

Students also viewed these Accounting questions