On 1 January 2015, Based on a Valuer's Estimate of Fair

question 37

Multiple Choice

On 1 January 2015, based on a valuer's estimate of fair value, it was decided to revalue the plant to $65 000. The plant was then assessed to have a further useful life of 5 years and an expected residual amount of $5000. What is the journal entry in the books of Brown Ltd to record depreciation on plant on a straight-line basis for the half-year ending 30 June 2015 (balance date) ?

• A) Depreciation expense - plant 12 000 Accumulated depreciation- plant 12 000
• B) Depreciation expense - plant 6 000 Accumulated depreciation - plant 6 000
• C) Accumulated depreciation - plant 6 000 Depreciation expense - plant 6 000
• D) Depreciation expense - plant 6 500 Accumulated depreciation- plant 6 500

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Definitions:

Serious Relationship

A deeply committed partnership between individuals, often characterized by mutual love, respect, and plans for a future together.

Active Listening

An attentive and engaged form of listening that involves fully concentrating, understanding, responding to, and remembering what is being said.

Expressing Feelings

The process of making one's emotions known to others through words, facial expressions, body language, or other forms of communication.

Sense

A physiological capacity of organisms that provides data for perception, such as sight, sound, touch, taste, and smell.