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MHJ purchased an asset for 53,500, which incurred a delivery charge of 20,000. MHJ decided to set a depreciation rate of 15% per annum for the asset.
In its second year, the asset is re-valued at 180% of the net carrying value of the previous year.
What will be the asset's net carrying amount by the end of its second year?
Suggested Answer: B
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7 comments · newest first
DO
Dominga
12 months ago
Totally agree, the re-valuation really changes things!
SH
Shelia
1 year ago
Wait, how does it get re-valued at 180%? That seems off.
JA
Jackie
1 year ago
I think the net carrying value will be higher than that!
NA
Nadine
1 year ago
Depreciation is 15% per year, right?
MI
Micah
1 year ago
The initial cost is 53,500 plus 20,000 delivery.
KI
King
1 year ago
Hmm, I'm not too familiar with the specifics of cloud-based SD-WAN. I'll need to think through the differences between on-premises and cloud-based deployments to identify the main advantages.
AV
Avery
1 year ago
I think the deduction is based on doubtful debts, but I'm not completely sure if it only allows for 75% of the statutory amount.