A company which uses the revaluation model for its PPE bought a building on 1 January 2014 for £50m. The building has an estimated useful life of 50 years and nil residual value. On 31 December 2018, the building was revalued at £40.5m and on 31 December 2020 it was revalued for a second time at £39m. The company uses the straight-line method of depreciation for all PPE items. There was no change to the remaining useful life after each revaluation. What is the net effect of both revaluations on the statement of comprehensive income?

Answers

Answer 1

Answer:

The net effect of both revaluations on the statement of comprehensive income is a net revaluation loss of £4.20m that will reduce the comprehensive income by the exact amount of £4.20m.

Step-by-step explanation:

This can be determined using the following 3 steps:

Step 1: Calculation of the effect of first revaluation: from 01 January 2014 to 31 December 2018

Building cost = £50

Number of useful life = 50

Revalued amount on 31 December 2018 = £40.5m

Annual depreciation expenses from 01 January 2014 to 31 December 2018 = Building cost / Number of useful life = £50m / 50 = £1m

Number of years from 01 January 2014 to 31 December 2018 = 5

Total depreciation expenses from 01 January 2014 to 31 December 2018 = Annual depreciation expenses from 01 January 2014 to 31 December 2018 * Number of years from 01 January 2014 to 31 December 2018 = £1m * 5 = £5m

Net book value on 31 December 2018 = Building cost - Total depreciation expenses from 01 January 2014 to 31 December 2018 = £50m - £5m = £45m

Revaluation loss from the first revaluation = Net book value on 31 December 2018 - Revalued amount on 31 December 2018 = £45m - £40.5m = £4.50m

Step 2: Calculation of the effect of second revaluation: from 01 January 2019 to 31 December 2020

Revalued amount on 31 December 2020 = £39m

Number of useful life remaining after 31 December 2018 = Number of useful life - Number of years from 01 January 2014 to 31 December 2018 = 50 - 5 = 45

Annual depreciation expenses from 01 January 2019 to 31 December 2020 = Revalued amount on 31 December 2018 / Number of useful life remaining after 31 December 2018 = £40.5m / 5 = £0.90

Number of years from 01 January 2019 to 31 December 2020 = 2

Total depreciation expenses from 01 January 2019 to 31 December 2020 = Annual depreciation expenses from 01 January 2019 to 31 December 2020 * Number of years from 01 January 2019 to 31 December 2020 = £0.90 * 2 = £1.80

Net book value on 31 December 2020 = Revalued amount on 31 December 2018 - Total depreciation expenses from 01 January 2019 to 31 December 2020 = £40.5m - £1.80 = £38.70m

Revaluation surplus from the second revaluation = Revalued amount on 31 December 2020 – Net book value on 31 December 2020 = £39m - £38.70 = £0.30m

Step 3: Calculation of the net effect of both revaluations on the statement of comprehensive income

Net revaluation loss = Revaluation loss from the first revaluation - Revaluation surplus from the second revaluation = £4.50m - £0.30m = £4.20m

Therefore, the net effect of both revaluations on the statement of comprehensive income is a net revaluation loss of £4.20m that will reduce the comprehensive income by the exact amount of £4.20m.

Answer 2

The net effect of the revaluations on December 31, 2018 and December 31, 2020 is that the comprehensive income will reduce by £11 million.

Data and Calculations:

Cost of PPE on January 1, 2014 = £50 million

December 31, 2018:

Revaluation amount =                   £40.5 million

Revaluation Loss =                          £9.5 million (£50 million - £40.5 million)

New book value =                        £40.5 million

December 31, 2020:

Revaluation amount =                   £39 million

Revaluation Loss =                          £1.5 million (£40.5 million - £39 million)

New book value =                        £39 million

Total Revaluation Loss = £11 million (£9.5 + £1.5 million)

Thus, the net effect of both revaluations on the company's statement of comprehensive income is reduction of £11 million.

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Related Questions

Which expression is equal to 7/v5

Answers

its b because to simplify radical you multiply by in this instance sqrt of 5 on the denominator and numerator

Which expression is equivalent to 4 - (2m - 3)?
4 - 2m - 3
4- 2m + 3
-8m + 3
0-8m + 12

Answers

Answer:

4 - 2m + 3

Step-by-step explanation:

when you distribute the negative sign you will get this

Answer:

B on Edge

Step-by-step explanation:

Evaluate each expression. Enter the correct answers in the boxes. (60−6)×(13)3+27÷3= ( 60 − 6 ) × ( 1 3 ) 3 + 27 ÷ 3 = 82÷4×(2+3)−9= 8 2 ÷ 4 × ( 2 + 3 ) − 9 = Ʃ 789+Plus456-Minus123×Multiplied by0.,÷Divided byemptyemptyBackspace=Equals

Answers

Answer:

2115

Explanation:

To evaluate the expression (60−6)×(13)3+27÷3 we use BODMAS

BODMAS is an acronym/rule in mathematics that dictates the order we should solve mathematical operations such as the above.

BODMAS stands for bracket first, order or of, division, multiplication, addition and then lastly subtraction

To solve the expression using BODMAS, we solve the brackets first

(60−6)×(13)3+27÷3 =54×39+27/3

Then division

=54×39+9

=2106+9

Then addition

=2106+9=2115

Answer=2115

I'm stuck on this question:

What's 100 divided by 2?

Answers

Answer:

50

Step-by-step explanation:

100 into 2 parts is 50

State all integer values of x in the interval [1, 8] that satisfy the following inequality:
4x- 5> 4

Answers

Step-by-step explanation:

4x - 5 > 4

4x > 9

x > 2.25

Hence the integer values of x that satisfy are 3, 4, 5, 6, 7 and 8.

Last month, you joined an online strategy game. When you joined, there were
25 members. This month, there are 47 members. What is the percent change in
the number of members from last month to this month? *
answers fast please

Answers

Answer:

its 24

Step-by-step explanation:

you count all the way up to 47 from 25

Answer:

46.8

Step-by-step explanation:

formula is change/ original x 100

Tickets to the school musical cost $6.25. The amount received from ticket sales is $706.25. How many tickets were sold?

Answers

Answer:

Step-by-step explanation:

if we received 706.25 dollars and a ticket is 6.25

706.25/6.25=113 tickets sold

Answer:

113

Step-by-step explanation:

You have to divided 706.25 by 6.25 and then you get 113. 113 is your anwser.

Hope this helped!

Which value is an output of the function?
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O-2
O 4
O7

Answers

The answer is the second one

i cannot find the toliet paper HEL_PPPPPPPPPPPPPPPPPPPPPP

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Answer:

lol coronavirus is real :(

Step-by-step explanation:

–18 • –17 please hrlp

Answers

Answer:

The answer is 306

Step-by-step explanation:

(−18)(−17)

=306

The answer would =306

Identify each value of x that makes 11 + 2x < 13

Answers

Answer:

x < 1

Step-by-step explanation:

This is the answer because:

1) 11 + 2 = 13 and 13 is not less than 13, it is equal to 13. Therefore, x has to equal anything less than 1 because then only inequality statement will be true.

Therefore, the answer is x < 1.

Hope this helps! :D

The value of x that makes 11 + 2x < 13 is x < 1

Given:

11 + 2x < 13

< means less than

11 + 2x < 13

Subtract 11 from both sides

11 + 2x - 11 < 13 - 11

2x < 2

divide both sides by 2

x < 2/2

x < 1

x less than 1

Therefore, the value of x that makes 11 + 2x < 13 is x < 1

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Solve in PEMDAS:
3 + [2 + 3 X (6 X 3)]

Answers

The answer should be 59

How much should Mr.Ajay and his wife save ina month to achieve their financial goal?​

Answers

Answer:

RM 1000

Step-by-step explanation:

Down payment = 10% of 600 000

                         [tex]= \frac{10}{100}*600000[/tex]

                         = RM 60000

5 years = 5 * 12 = 60 months

Amount to be saved in a month = 60000  ÷ 60

                                                    = RM 1000

Find the GCF of 74 and 154.

Answers

Answer: 2

Step-by-step explanation:

2

74:  2 37

154:  2711

GCF:2

Item 18 Two times the greater of two consecutive integers is 9 less than three times the lesser integer. What are the integers? Item 18 Two times the greater of two consecutive integers is 9 less than three times the lesser integer. What are the integers?

Answers

Answer:

11 and 12

Step-by-step explanation:

Let the consecutive integers be x and x+1

The lesser integer = x

The greater integer = x+1

Two times the greater of two consecutive integers is expressed as;

2(x+1) = 2x+2.

9 less than three times the lesser integer is expressed as;

3x - 9

Equate both expression

2x+2 = 3x - 9

2x-3x = -9-2

-x = -11.

x = 11

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Hence the integers are 11 and 12

Answer:

11 and 12

Step-by-step explanation:

credit:answer above me

Write the equation of the line passing through the points (2,-5) (3,-1)

Answers

Answer:

they give you two points... so use the point slope formula with one on the points

y - y1 = m ( x - x1)

Step-by-step explanation:

find the slope m  

m = y2 -y1 / x2-x1

from the given.. x1=2  and y1 = -5

x2 = 3  and y2 = -1     then,

m = -1 -( -5) / 3 - 2

m = 4/1

m = 4

now plug in to the point slope formula  either of the points... I'll use the 1st point

y - 2 = 4(x -(-5))

y -2 = 4(x +5)

y -2 = 4x +20

y = 4x +22  

there you go... see? :)  also why are you working on HW now.. ?? :/ isn't it winter break?

7x2 - 2x2 = .......................................
simple but he help me out
(BTW if u answered the)

Answers

Answer:

10

Step-by-step explanation:

7*2 - 2*2 = 14 - 4 = 10

Plz mark as brainliest!

Answer:

10

Step-by-step explanation:

A supplier of digital memory cards claims that less than 1% of the cards are defective. In a random sample of600 memory cards, it is found that 3% are defective, but the supplier claims that this is only a sample fluctuation. At the 0.01 level of significance, test the supplier's claim that less than 1% are defective. Use the p-value method.

Answers

Answer:

The  decision rule is

Fail to reject the null hypothesis

The conclusion is  

    The is no sufficient evidence to support the claim that the less than 1% of the cards are defective

Step-by-step explanation:

From the question we are told that

     The sample size is  [tex]n = 600[/tex]

      The population proportion of defective samples is p =  0.01

       The sample proportion of defective samples is  [tex]\^ p = 0.03[/tex]

       The level of significance is [tex]\alpha = 0.01[/tex]

       

The null hypothesis is [tex]H_o : p = 0.01[/tex]

The alternative hypothesis is  [tex]H_a: p < 0.01[/tex]

      Generally the test statistics is mathematically represented as

                  [tex]t = \frac{\^ p - p }{ \sqrt{ \frac{p( 1 - p )}{n} } }[/tex]      

=>              [tex]t = \frac{0.03 - 0.01 }{ \sqrt{ \frac{0.01( 1 - 0.01 )}{600} } }[/tex]

=>              [tex]t = 0.00406[/tex]

From the z table  the area under the normal curve to the left corresponding to  0.00406   is

         [tex]p-value = P(Z < 0.00406 ) = 0.50162[/tex]

comparing the p-valve and the level of significance we see that the

           [tex]p-value > \alpha[/tex]     hence  

The  decision rule is

Fail to reject the null hypothesis

The conclusion is  

    The is no sufficient evidence to support the claim that the less than 1% of the cards are defective

here are two receipts from a meal in a restaurant one persons subtotal is $24.95 if the tax rate at the restaurant is 9.5% how much will their sale tax be?

Answers

Answer:

$24.95X.095=$2.37

Answer:

Step-by-step explanation: 3.27

Samuel found the difference of the polynomials. (15x^2+11y^2+8x)-(7x^2+5y^2+2x)= blankx^2+6y^2+6x What value is missing from his solution?

Answers

Answer:

Co-efficient of [tex]x^{2}[/tex] is missing.

It should be 8[tex]x^{2}[/tex].

Step-by-step explanation:

Given two polynomials:

1st polynomial: [tex]15x^2+11y^2+8x[/tex]

2nd polynomial: [tex]-7x^2+5y^2+2x[/tex]

To find:

The value in the blank:

[tex](15x^2+11y^2+8x)-(7x^2+5y^2+2x)= \_\_ \ x^2+6y^2+6x[/tex]

Solution:

Here, we have 3 pair of like terms.

2 terms with [tex]x^{2}[/tex], 2 terms with [tex]y^{2}[/tex]and 2 terms with [tex]x[/tex].

Like terms can be subtracted.

Subtracting the terms with [tex]y^{2}[/tex], the coefficients will get subtracted.

[tex]11y^2 - 5y^2 = 6y^2[/tex]

Subtracting the terms with [tex]x[/tex], the coefficients will get subtracted.

[tex]8x -2x=6x[/tex]

Subtracting the terms with [tex]x^{2}[/tex], the coefficients will get subtracted.

[tex]15x^2 - 7x^2 =\bold{8}x^2[/tex]

Therefore, the answer is:

Co-efficient of [tex]x^{2}[/tex] is missing.

It should be 8[tex]x^{2}[/tex].

Ade is baking mini-loaves of bread. How many mini-loaves could he make with 10 cups of flour?

Answers

Answer: 25

Step-by-step explanation:

Since Ade uses 2 cups of flours for 5 mini loaves, it simply means that 1 cup of flour will be used for:

= 5/2 = 2.5 mini loaves

Therefore, the number of mini-loaves that he could make with 10 cups of flour would be:

= 10 × 2.5

= 25 mini loaves

Please help me I need help puhleass

Answers

Answer:

I can not see the full question

Step-by-step explanation:

Answer:

12/20 is 3/5, 42/66= 7/11, 7/56=1/8, 30/45=2/3, 9a/50a= i dont know because you are not able to divide 9/2 and is able to divide 50/2, 125/625= 1/5

Step-by-step explanation:

divide the numerator and the denominator buy the same number to get the answer i got 12/20 to 3/5 because 12/4= 3 and 20/4=5.

please help asap will give brainliest!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Answers

Answer:

X = 1.6

Step-by-step explanation:

Hope this helps. Pls give brainliest.

The line of sight from a small boat to the light at the top of a 35-foot lighthouse built on a cliff 25 feet above the water makes a 25° angle with the water. To the nearest foot, how far is the boat from the cliff?
Group of answer choices

75 feet

129 feet

141 feet

27 feet

Answers

The distance between a boat and a cliff is 129 feet.

Trigonometry

The trigonometric functions are used to determine the distance and angle in real-life situations.

How to find the distance between a boat and a cliff using trigonometry?

Consider the following diagram.

Let the distance between a boat and a cliff be [tex]x[/tex].

[tex]tan25^{o}=\frac{40}{x}[/tex]

[tex]x=\frac{35+25}{tan25}[/tex]

[tex]x=\frac{60}{0.4663}[/tex]

[tex]x=128.67[/tex]

Therefore, the distance between a boat and a cliff is 129 feet.

Learn more about trigonometry here-

https://brainly.com/question/26719838

#SPJ2

Which expression best estimates. -18 1/4 ÷ 2 2/3 A. 18÷3 B. -18÷3 C.-18÷(-3) D. 18÷(-3)​

Answers

Answer:

the amswer is d hope this helps

A little girl standing next to a telephone pole at 10 AM. The little girl is 4'6" tall and the telephone pole is 40 feet high. If the telephone pole cast 8 32 foot shadow, how long is a little girl shadow?

Answers

Answer:

The shadow of the pole is 1.2 feet long

Step-by-step explanation:

A little girl standing next to a telephone pole at 10 AM.

From the above question

Height of the girl = 4'6" tall = 4 feet and 6 inches tall

We convert to feet

= 12 inches = 1 foot

6 inches = x

Cross Multiply

12 × x = 6 × 1

x = 6/12 = 1/2 = 0.5 feet

Hence, the total height of the girl =

4 feet + 0.5 feet = 4.5 feet

The height of the telephone pole = 40 feet high.

The shadow of the telephone pole

= 8' 32 foot shadow

= 8 feet, 32 inches

We convert the inches to feet

12 inches = 1 foot

32 inches = x

Cross Multiply

12 × x = 32 × 1

x = 32/12 = 8/3 = 2.67 feet

Total length of the pole = 8 feet+ 2.67 feet = 10.67 feet

how long is a little girl shadow?

This is calculated using proportion

Shadow/Height

Shadow of the girl = x

Hence:

Shadow of the girl/Height of the girl = Shadow of the pole/Height of the pole

x/4.5 feet = 10.67 feet/40 feet

Cross Multiply

40 × x= 4.5 × 10.67

x = 4.5 × 10.67/40

x = 1.200375 feet

Approximately = 1.2 feet

Hence, the shadow of the pole is 1.2 feet long

a=(5,8)
b=(3,2)
c=(-1,6)
d=(-3,-4)
*find the gradient of the line that passes through points a and b
*find the gradient of the line that passes through points c and d
*find the gradient of the line that passes through points a and d
god bless anyone who can do this sh <3

Answers

Step-by-step explanation:

Gradient of line AB = 6/2 = 3.

Gradient of line CD = 10/2 = 5.

Gradient of line AD = 12/8 = 1.5.

-4x -2y = -12
4x + 8y = -24

Answers

x= 6 and y= -6

Step-by-step explanation:

Answer:

x = 6, y = -6

Step-by-step explanation:

After adding the equations together, the 4x and -4x cancel each other out. This makes our new equation:

6y = -36

Divide both sides by 6

y = -6

Plug -6 into y in one of the equations

4x + 8y = -24   =

4x + 8(-6) = -24   =

4x - 48 = -24

Add 48 to both sides

4x = 24

Divide both sides by 4

x = 6

find a range of values for x ​

Answers

Answer:

22

Step-by-step explanation:

what is the circumference

Answers

Answer:  69.43 cm

Step-by-step explanation:

Given: Arc length (JK) = 40.5 cm

Central angle ∠ JLK = 210°

Arc length = [tex]\dfrac{x}{360}\times\text{Circumference}[/tex]

[tex]\Rightarrow\ 40.5=\dfrac{210}{360}\times\text{Circumference}\\\\\Rightarrow \text{Circumference} =40.5\times\dfrac{360}{210}\\\\\approx69.43\ cm[/tex]

Hence, Circumference = 69.43 cm

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