A carpenter applies the revaluation method of depreciation to the hand tools used in the business. At the end of the financial year, every hand tool in use, including any bought during the year, is revalued. Fresh hand tools were bought during the year, but none of the hand tools were sold or otherwise disposed of. Which value of hand tools is used to show the calculation of depreciation for the year?
- Avalue at the start of the year less cost of new tools less value at the end of the year
- Bvalue at the start of the year less value at the end of the year
- Cvalue at the start of the year plus value at the end of the year less new hand tools purchased
- Dvalue at the start of the year plus new hand tools purchased less value at the end of the year