Depreciation totally throwing me on this task

AnyPotts
Registered Posts: 13 New contributor 🐸
You know when you look at something for so long, you just cannot think your way out of it...at this point i just feel silly for not knowing what to do.
Could anybody talk me through the calculations for the depreciation in this task please ready to be added to the COS/Admin/Distribution..
thank you
Could anybody talk me through the calculations for the depreciation in this task please ready to be added to the COS/Admin/Distribution..

thank you
0
Comments
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Im studying FSCL myself at the moment, on chapter 8.
Land - Dr Land with 500k and Cr Revaluation Surplus 500k.
Buildings is at 2% 125500x2%=2510 p.a.
Plant and E is at 20% 40000x20%=8000 p.a. but its diminishing so you need to reduce it every year. e.g. 40k-8k=32k. 32000x20%=6400, 32000-6400=25600. 25600x20%=5120 and so on.
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it says land is not depreciated though....only buildings....would that change the answer?
12,5500 - 50,500 = 75,000
2% x 75,000 = 1'5000 -
@Anypotts Correct
You need to take the land out of the Land and Buildings amount on the trial balance and then depreciate. For the Plant and Machinery you need to take off the depreciation that has already occured and then depreciate.
All figures (000)
L+B -Straight line
125,500-50,500= 75,000
2%75000= 1,500
P+M- Rolling Balance
40,000 - 14,400 = 25,600
20% * 25600 = 5,120
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