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Question · The IAS 16 cost model

Delmane applies the cost model to a building held as investment property whose depreciable amount is 4,500,000, depreciated on a straight-line basis over 30 years (case assumption). The charge for the period is 150,000. Record the depreciation entry.

Depreciable amount of the building
4,500,000
Annual charge
150,000
Your answer
  1. Line 1

    Account Depreciation expense

  2. Line 2

    Account Accumulated depreciation

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