Reve Company was incorporated on January 1, 2019.

In preparing the financial statements for the year ended December

the entity used the following original cost and useful life for the property, plant and equipment:

Original Cost Useful Life

Building 15,000,000 15 years
Machinery 10,500,000 10 years
Furnitures 3,500,000 7 years

On January 1, 2023, the entity determined that the remaining useful life of 10 years for building, 7 years for the machinery
and 5 years for the furniture.
The entity used the straight line method of depreciation with no residual value.
What is the total depreciation for 2023?

Solutions:

For the Year Ended December 31, 2022

Original Cost Useful Life (Years) Depreciation for 2022 2019-2022

Building 15,000,000 15 1000000 4,000,000
Machinery 10,500,000 10 1050000 4,200,000
Furnitures 3,500,000 7 500000 2,000,000
2550000

For the Year Ended December 31, 2022

Carrying Amount - January 1,2023 Useful Life (Years) Depreciation for 2022
Building 11,000,000 10 1100000
Machinery 6,300,000 7 900000
Furnitures 1,500,000 5 300000
Total Depreciation for 2023 2300000
 the year ended December 31, 2022,

g, 7 years for the machinery