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MC Question 13
The following trial balance extract relates to a property which is owned by Veeton as at 1 April 2014:
| Dr | Cr | ||
|---|---|---|---|
| $’000 | $’000 | ||
| Property at cost (20 year original life) | 12,000 | ||
| Accumulated depreciation as at 1 April 2014 | 3,600 | ||
On 1 October 2014, following a sustained increase in property prices, Veeton revalued its property to $10·8 million.
What will be the depreciation charge in Veeton’s statement of profit or loss for the year ended 31 March 2015?
A $540,000
B $570,000
C $700,000
D $800,000