PRC-1 · Chapter 6 · Question 61 of 100
Hunza Limited acquired an office building on 1 October 2014. Initial costs were: Land Rs. 2,000k, Building structure Rs. 10,000k (25 yr life), Air conditioning Rs. 4,000k (10 yr life, 500k RV). What is the total carrying amount at 31 March 2015?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Rs. 15,625,000
Explanation
Time = 6 months. Land is not depreciated (2,000). Building depr = 10,000 / 25 * 6/12 = 200 (WDV = 9,800). AC depr = (4,000 - 500) / 10 * 6/12 = 175 (WDV = 3,825). Total = 2,000 + 9,800 + 3,825 = Rs. 15,625k.
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