Accounting 9706 · AS & A Level · Accounting for non-current assets

Accounting for non-current assets — practice question

A company ends its financial year on 30 April. It buys a factory in May 2014 for $200\,000$. The factory is to be depreciated over $20$ years. A full year’s depreciation is charged in the year of acquisition. In May 2017 the factory is revalued to $300\,000$. How much should be transferred to the revaluation reserve account?

  • A$100\,000$
  • B$120\,000$
  • C$130\,000$
  • D$140\,000$

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