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SSC Financial and Cost Accounting P-1 QUESTION #6134
Question 1

Property purchased 1 January 2010 for $100,000, useful life 50 years. On 1 January 2024, revalued to $119,000. Total useful life remains 50 years from 2010. What is the depreciation charge for year ended 31 December 2024?

  • $2,000
  • $2,380
  • $2,778
  • $3,306✔️
Correct Answer Explanation

Option D ($3,306) is correct.

Years elapsed by 1 Jan 2024 = 14 years; Remaining life = 50 − 14 = 36 years

Annual depreciation = $119,000 ÷ 36 = $3,305.56 ≈ $3,306