Mackenzie Ltd's fleet of delivery trucks (original cost $850 000) had a carrying amount on 1 July 2019 of $470 000. On that date, their value was revised to $500 000. Future depreciation charges will be based on which amount?

Question

Quizplus · Accepted Answer

When an asset's value is revised, the carrying amount is updated to the new value. Therefore, future depreciation charges will be based on the new carrying amount of $500 000. Option A is the correct answer.

Mackenzie Ltd's Fleet of Delivery Trucks (Original Cost $850 000)