Where an asset is revalued,the treatment of depreciation is to:
A) Recalculate and charge it to the income statement based on the revalued amount and the original residual value.
B) Charge the original amount of depreciation to the income statement and transfer any change in value to the asset revaluation reserve.
C) Recalculate and charge it to the income statement based on the revalued amount for the asset and the revalued residual value.
D) Charge the original amount of depreciation to the income statement and calculate the new depreciation based on the revalued amount and treat it as a special item.
E) None of the given answers.
Correct Answer:
Verified
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