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Part B Mimosa Ltd constructed a building at a cost of $ 9 6 0 0 0 0 . The building was completed on 1
Part B
Mimosa Ltd constructed a building at a cost of $ The building was completed on
January and was expected to have a useful life of years after which time it would be
demolished at an expected demolition cost of $ Being on the coast, the building was
subject to wild winds at times. On January the roof of the building was blown away and
a replacement was constructed at a cost of $ It was predicted that by replacing the
buildings roof its expected useful life would now be years after the end of the financial
year. Mimosa Ltd uses the straightline method to depreciate the building and its financial year
ends on December.
REQUIRED
Calculate the depreciation cost for the and financial years. If possible in accordance to the NZ Aus accounting standards
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