Question
In the year 2016-17, an entity has acquired a new freehold building with a useful life years for Rs. 90,00,000. The entity desires to
In the year 2016-17, an entity has acquired a new freehold building with a useful life years for Rs. 90,00,000. The entity desires to calculate the depreciation charge per annum using straight-line (withnoresidualvalueoflifts&fixturesattheendoftheirusefullife)asfollows: of 50 a method. It has identified the following components Compone Useful life Cost nt (Years) Infinite Rs. 20,00,000 Rs. 10,00,000 Land Roof 25 Lifts 20 Rs. 5,00,000 Fixtures 10 Rs. 5,00,000 Remainder of building 50 Rs. 50,00,000 Rs. 90,00,000 You are required to calculate depreciation for the year 2016-17 as per componentization method.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Componentization method calculates depreciation based on different depreciation periods fo...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended Textbook for
Applying International Financial Reporting Standards
Authors: Keith Alfredson, Ken Leo, Ruth Picker, Paul Pacter, Jennie Radford Victoria Wise
3rd edition
730302121, 978-0730302124
Students also viewed these Accounting questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App