BB Limited has a policy of revaluing its PPE. An asset cost GHC 15m on 1 January 2019, has a useful life of 15 years and is depreciated on a straight-line basis to a zero-residual value. The value of the asset at 31 December 2019 was GHC 14.5m. At 31 December 2020, the market value of the asset was GHC 12.5m. The accounting entry at 31 December 2019 would bea.Depreciation of GHC 1m charged to the income statement; increase in value of GHC 0.5m sent to revaluation reserveb.Depreciation of GHC 1m charged to income statement; increase in value of GHC 0.5m sent to profit and loss accountc.Depreciation of GHC 1m charged to income statement; decrease in value of GHC 0.5m charged to revaluation reserved.Depreciation of GHC 1m charged to income statement; decrease in value of GHC 0.5m charged to other comprehensive income

An entity purchased an asset on 1 January 2016 for GHC 100,000. The asset has a useful life of 10 years and uses the straight-line method of depreciation. On 1 January 2019, the asset’s useful life is revised to add a further two (2) years to it. The asset has no residual value. The depreciation charge for the year to 31 December 2019 should bea.GHC 8,000b.GHC 10,000c.GHC 12,000d.GHC 5,000

A company bought an equipment worth Ghc 200,000 and the equipment is to be depreciated at 5%, using the reducing balance method. What would be the value of the asset after 3 years? A. Ghc 200,000 B. Ghc 171,475 C. Ghc 180,505 D. Ghc 190,000 E. Ghc 170,000

Following a delayering exercise, Carter vacated an office building and let it out to a third party on 30 June 2018. The building had an original cost of GHS900,000 on 1 January 2010 and was being depreciated over 50 years. It was judged to have a fair value on 30 June 2018 of GHS950,000. At the year end date of 31 December 2018, the fair value of the building was estimated at GHS1.2 million. Carter uses the fair value model for investment property. What amount will be shown in revaluation surplus at 31 December 2018 in respect of this building?a.GHS 250,000b.GHS 300,000c.GHS 203,000d.GHS 417,000

Assume that an asset was bought at a cost of $50 000. It is expected that the asset will have a useful life of 10 years with the straight-line depreciation method being used. At the beginning of year 5 the total useful life is re-estimated downward to 8 years. Under AASB 116 the annual depreciation expense for the final years of useful

An equipment was purchased on January 1, 2017 for P50, 000 with a salvage value of P5, 000 and useful life of 10 years. The company has a semi-annual accounting period. The amount of depreciation to be recorded on June 30, 2017 isSelect one:a.P4,500b.P2,250c.P2,500d.P5,000