When Ahmed commenced trading as a car hire dealer on $1$ January $2015,$ he purchased business premises at a cost of OMR $50,000.$ For the purpose of accounting for depreciation, he decided the following.

$($a$)$ The land part of the business premises was worth OMR $20,000$; this would not be depreciated.

$($b$)$ The building part of the business premises was worth the remaining OMR $30,000.$

his would be depreciated by the straight line method to a nil residual value over $30$

years.

$$ After five years of trading, on $1$ January $2020$ Ahmed decides that his business

premises are now worth OMR $150,000,$ divided into: Land OMR $75,000,$Building OMR $75,000$ He estimates that the building still has a further $25$ years of useful life

remaining. Required

$($a$)$ Calculate the annual charge for depreciation for the first five years of the

building$$s life and the statement of financial position value of the land and building as at the end of each of the first five years.

$($b$)$ Demonstrate the impact the revaluation will have on the depreciation charge and the statement of financial position value of the land and buildingf