Question:

The cost of purchase of an item of property, plant and equipment was 100000, with straight line depreciation rate 10%, and accumulated depreciation 40000.

Required:

Please calculate new value of PPE and accumulated depreciation after revaluation given the following scenarios:

a. revaluation with factor 2

b. revaluation of PPE to 150 000

c. revaluation of net book value of PPE to 120 000