Answer the following questions : A property was purchased on 1 January 20X0 for $2m (estimated depreciable amount $1m - useful economic life 50 years). Annual depreciation of $20,000 was charged from 20X0 to 20X4 inclusive and on 1 January 20X5 the carrying value of the property was $1.9m. The property was revalued to $2.8m on 1 January 20X5 (estimated depreciable amount $1.35m - the estimated useful economic life was unchanged). Required Calculate the revaluation gain and prepare the journal entry to account for the revaluation and compute the revised annual depreciation charge.

Answer the following questions: A property was purchased on 1 January 200 for $2m (estimated depreciable amount $1m - useful economic life 50 years). Annual depreciation of $20,000 was charged from 20X0 to 204 inclusive and on 1 January 205 the carrying value of the property was $1.9m. The property was revalued to $2.8m on 1 January 205 (estimated depreciable amount $1.35m - the estimated useful economic life was unchanged). Required Calculate the revaluation gain and prepare the journal entry to account for the revaluation and compute the revised annual depreciation charge