FAR-1 IAS-16

Spring-24
Q.1 You are the finance manager of Paradox Limited (PL). The financial statements of PL for the
year ended 31 December 2023 are under preparation. In the beginning of 2023, PL adopted
the revaluation model for the subsequent measurement of property, plant and equipment. A
new CEO has recently joined PL. He has pointed out the following non-compliances of IFRSs
after reviewing the draft financial statements of PL:
(i) IAS 16 does not allow selective revaluation, so all classes of property, plant and
equipment should have been revalued.
(ii) The adoption of the revaluation model has been accounted for as a ‘Change in estimate’
(i.e. prospectively) though it is a ‘Change in accounting policy’.
(iii) IAS 16 requires that incremental depreciation must be transferred from revaluation
surplus to retained earnings but the transfer has not been made in the draft financial
statements.
(iv) Some vehicles have been given on rent by PL; these should have been included in
investment property, but instead, they are included in property, plant and equipment.

Required:
Briefly respond to the non-compliances pointed out by the CEO. (08)

A.1 (i) The point raised by CEO is not correct. It is not necessary that all items of property,
plant and equipment (PPE) are revalued, if an item of PPE is revalued, the entire class
of PPE to which that asset belongs shall be revalued. So, selected classes of assets can
be revalued but selected assets within a class cannot be revalued.

(ii) The point raised by CEO is not correct. Adoption of revaluation model for property,
plant and equipment is a change in accounting policy. As per IAS 8, the initial
application of a policy to revalued assets in accordance with IAS 16 is not accounted
for retrospectively.

(iii) The point raised by CEO is not correct. The transfer of incremental depreciation each
year is not compulsory. The entity can choose to transfer the whole revaluation surplus
to retained earnings upon disposal of assets or as incremental depreciation over the
useful life of the assets.

(iv) The point raised by CEO is not correct. As per IAS 40, only land or a building can be
investment property. So, vehicles whether used in business or given for rentals, should
be classified as property, plant and equipment.
Autumn-23
Q.2 The following information pertains to non-current assets of Trout Limited (TL):

(i) Details of the property, plant and equipment as at 1 January 2022 are as follows:

Cost/revalued Accumulated
Depreciation Rate/ Subsequent
Assets amount depreciation method life measurement
------- Rs. in million -------
Reducing
Equipment 360 110 20% Cost
balance
Office
280 56 Straight line 10 years* Revaluation
building
*Remaining life at the date of last revaluation

As at 1 January 2022, the revaluation surplus related to the office building

amounted to Rs. 32 million. However, on 31 December 2022, due to a slump in
the market, the building was again revalued by an independent valuer, and this
time, the office building was valued at only Rs. 156 million.
 • On 1 July 2022, a new equipment was acquired by making payment of Rs. 50
million to the supplier. In addition, an old equipment was given in exchange to
the supplier. The fair values of the old and new equipment were assessed at
Rs. 60 million and Rs. 105 million, respectively. The old equipment had been
acquired at a cost of Rs. 80 million on 1 July 2019.

• On 1 January 2022, TL completed construction of the warehouse at a cost of

Rs. 55 million for subsequent sale to customer. However, warehouse was given
on rent at an annual rent of Rs. 8 million on 1 April 2022. The fair value of
the warehouse on various dates are as follows:

Rs. in million
1 January 2022 65
1 April 2022 73
31 December 2022 80

Other information:
▪ TL accounts for revaluation using the net replacement value method and transfers
the maximum possible amount from revaluation surplus to retained earnings on an
annual basis.
▪ The fair value model is used for the subsequent measurement of all investment
properties.

Required:
Prepare the notes on ‘Property, plant and equipment’ and ‘Investment property’ to be
included in TL’s financial statements for the year ended 31 December 2022.
(Comparative figures and a column for the total are not required)
(17)

A.2 Trout Limited (TL)

Notes to the financial statements for the year ended 31 December 2022
• Property, plant and equipment
Office Building Equipment
------------- Rs. in million -------------
Gross carrying amount – opening 280.0 360.0
Accumulated depreciation (56.0) (110.0)
Opening carrying amount 224.0 250.0
Addition 60+50 110.0
Disposal 80–38.5(W-2) (41.5)
Depreciation for the year (280÷10) OR (224÷8) (28.0) (W-3)(56.4)
Revaluation
- P&L (W-1)(12.0) -
- Surplus (28.0) -
Closing carrying amount 156.0 262.1
Gross carrying amount - closing 156.0 390.0
Accumulated depreciation - (127.9)
Closing carrying amount 156.0 262.1

Office Building Equipment

Measurement base Revaluation Cost model
Useful life/depreciation rate 10 years 20%
Depreciation method Straight line Reducing balance

1.1

• Had revaluations not been made, the carrying value of the office building
as on 31 December 2022 would have been Rs. 168(156+12) million.

• The last revaluation was performed on 31 December 2022 by an

independent firm of valuers.
 2. Investment property Warehouse
Rs. in million
Transfer from inventory 73.0
Fair value adjustment 80–73 7.0
Closing carrying amount 80.0

• The investment property is subsequently measured at fair value.

• The rental income for the year ended 30 June 2022 is Rs. 6(8×9/12) million.

W-1: Revaluation of office building 2022 Rs. in million

Carrying value as on 31 December 2022 280–56–28 196.0
Revalued amount (156.0)
Revaluation loss 40.0
Revaluation surplus available from previous revaluation 32–4(32÷8) (28.0)
Revaluation loss taken to P&L 12.0
W-2: Accumulated depreciation for old equipment Rs. in million
Depreciation for 2019 80×20%×(6÷12) 8.0
Depreciation for 2020 (80–8) ×20% 14.4
Depreciation for 2021 (72–14.4) ×20% 11.5
33.9
Depreciation for 2022 (57.6–11.5)×20%×(6÷12) 4.6
38.5

W-3: Depreciation expense for equipment 2022 Rs. in million

Old (W-2) 4.6
New 110 ×20%×(6÷12) 11.0
Remaining [280(360–80)–76.1(110–33.9)(W-2)]×20% 40.8
56.4

Spring-23
Q.3 Following information pertains to non-current assets of Mesopotamia Limited (ML):

(i) On 1 July 2019, ML acquired a warehouse at a cost of Rs. 300 million and was
immediately given on rent to a third party. On 1 January 2022, ML commenced the
development work on its warehouse with a view to put it in own use. The development
work was completed on 31 March 2022 at a cost of Rs. 50 million. ML started using
the warehouse for its inventory on 1 May 2022. Fair value of the warehouse on various
dates are as follows:
31 Dec 2020 31 Dec 2021 31 Mar 2022 31 Dec 2022
Rs. in million 316 344 352 366
Depreciation is charged on warehouse at a rate of 10% per annum using the reducing
balance method.
(ii) On 1 January 2020, ML purchased a heavy duty vehicle for Rs. 360 million. On
purchase date, the vehicle had an estimated useful life and residual value of 5 years
and Rs. 72 million respectively.
During 2022, ML has decided to change the depreciation method for vehicles from
reducing balance to straight line.
(iii) On 1 June 2021, ML started construction of an office building. The building was
available for use on 1 October 2022 and was immediately put into use. Details of the
construction costs incurred are as under:
 Payment date Rs. in million Sources (See below)
1 May 2021 140 A
1 January 2022 *100 A&B
1 April 2022 70 C
1 August 2022 160 D
470
*The bill from the contractor was received on 1 December 2021.
These payments were financed through the following sources:
(A) A short term loan of Rs. 200 million obtained on 1 April 2021 from Bank A at the
rate of 16% per annum. The surplus funds available from the loan were invested
in a saving account at 10% per annum. On 1 March 2022, ML repaid the loan
using the proceeds received from a right issue of shares.
(B) Excess cash available with ML in current bank accounts.
(C) Withdrawals from its short term investments earning a profit of 12% per annum.
(D) Withdrawals from a running finance facility from Bank B carrying interest at
14% per annum. The facility is also used for working capital needs.
Depreciation is charged on office building using straight line method over the
estimated useful life of 20 years.

Additional information:
▪ Cost model is used for subsequent measurement of all property, plant and equipment.
▪ Fair value model is used for subsequent measurement of all investment properties.

Required:
Prepare relevant extracts (including comparative figures) from ML’s statement of profit or
loss for the year ended 31 December 2022 and statement of financial position as on that date. (17)

A.3 Mesopotamia Limited

Statement of profit or loss for the year ended 31 December 2022
2022 2021
------ Rs. in million ------
Fair value gain on warehouse 344–316 - 28.00
Depreciation:
– Warehouse (W-1) 29.55 -
– Vehicle (W-3) 39.04 71.81
– Building (W-4) 6.18 -
Interest expense 200×16%×2÷12 - 5.33
Investment income 200×10%×1÷12+60×10%×1÷12 - 2.17

Mesopotamia Limited
Statement of financial position as on 31 December 2022
2022 2021
------ Rs. in million ------
Non-current assets:
Property, plant and equipment
– Warehouse (W-1) 364.45
– Vehicle (W-3) 150.08 189.12
– Office building (W-4) 488.05
Capital work in progress (W-4) 255.17

Investment property
– Warehouse 344.00

Current liabilities:
 Loan – Bank A 200.00
Other payables 100.00

W-1: Warehouse as PPE Rs. in million

01-01-2022 Transferred into PPE 344.00
Development cost 50.00
394.00
31-12-2021 Depreciation for 2022 394×10%×(9÷12) (29.55)
364.45

W-2: Depreciationn rate for vehicle

= 1 – R/C
√
= 1 – 5 72/360
√
= 27.52%

W-3: Vehicle Rs. in million

01-01-2020 Cost 360.00
31-12-2020 Depreciation for 2020 (360×27.52%)(W-2) (99.07)
260.93
31-12-2021 Depreciation for 2021 260.93×27.52% (71.81)
189.12
31-12-2022 Depreciation for 2022 (189.12–72)÷3 (39.04)
150.08

W-4: Building Rs. in million

2021:
Payment 140.00
Accrual 100.00
Borrowing cost capitalized:
Cost (200×16%)×(7÷12) 18.67
Interest income (60×10%)×(7÷12) (3.50)
255.17
2022:
Further payment 70+160 230.00
Borrowing cost:
(iv) Specific (200×16%)×(2÷12) 5.33
• General (160×14%)×(2÷12) 3.73
494.23
Depreciation 494.23÷20×3÷12 (6.18)
488.05

Autumn-22
Q.4 Following information pertains to non-current assets of GnuCash Limited (GL):

(i) GL purchased a manufacturing plant for Rs. 340 million on 1 January 2021. On that
date, the plant had an estimated useful life and residual value of 13 years and Rs.
60 million respectively. The revalued amounts and residual value were as follows:
Revalued amount Residual value
----------- Rs. in million -----------
30 June 2021 304 54
30 June 2022 315 44

(ii) A warehouse owned by GL was given on rent on 1 January 2022. Previously, the
warehouse was in use of GL.

The warehouse was acquired by GL on 1 July 2019 at a cost of Rs. 200 million and is
being depreciated @ 10% per annum on reducing balance method.
 Fair value of the warehouse on various dates are as follows:

Rs. in million
1 January 2022 206
30 June 2022 214

Rentals earned for the year ended 30 June 2022 amounted to Rs. 10 million out of
which Rs. 6 million is still outstanding.

(iii) GL acquired a property comprising of three similar showrooms at a total cost of

Rs. 900 million on 1 October 2021. 40% of the cost of property is attributable to the
value of land. Each of the showroom can be leased out separately and has a useful life
of 15 years with no residual value.

GL is using one showroom for its own products while the other showrooms were held
to be leased out. On 1 March 2022, the two showrooms were given on monthly rent of
Rs. 4 million.

The fair value of each showroom is increasing by Rs. 3 million each month.

Other information:
▪ Cost model is used for subsequent measurement of all property, plant and equipment
except for manufacturing plant for which revaluation model is used.
▪ Maximum possible amount is transferred from the revaluation surplus to retained
earnings on an annual basis.
▪ Fair value model is used for subsequent measurement of all investment properties.

Required:
Prepare notes on ‘Property, Plant and Equipment’ and ‘Investment Property’, for inclusion
in GL’s financial statements for the year ended 30 June 2022. (20)
(Comparative figures and column for total are not required)

A.4 GnuCash Limited (GL)

Notes to the financial statements for the year ended 30 June 2022
1 Property, plant and equipment
Manufacturing Showrooms
Warehouse
plant Land Building
---------------------- Rs. in million ----------------------
Gross carrying amount – opening 304.0 200.0 - -
Accumulated depreciation - (38.0) - -
(20+18)

Opening carrying amount 304.0 162.0 - -

Addition 120.0 180.0
(300×40%) (300×60%)
Depreciation for the year (20.8) (8.1) - (9.0)
(304–44)÷12.5) (162×10%×6÷12) (180÷15)×9÷12
Revaluation
- P&L (W-1)23.0
- Surplus 8.8 52.1
Reclassification (206.0)
Closing carrying amount 315.0 - 120.0 171.0

Gross carrying amount - closing 315.0 - 120.0 180.0

Accumulated depreciation - - (9.0)
Closing carrying amount 315.0 - 120.0 171.0

Manufacturing
plant Warehouse Showroom
Measurement base Revaluation Cost model Cost model
Useful life/depreciation rate 12.5 years 10% 14 years
Depreciation method Straight line Reducing balance Straight line
 1.1

• Had revaluations not been made, the carrying value of the plant as on 31
December 2022 would have been Rs. 306.2 (W-2) million.
Investment property Warehouse Showroom
------ Rs. in million ------
Opening carrying amount - -
Additions - 600.0
(900×2/3)
Transfer from property, plant and equipment 206.0 -
Fair value adjustment 8.0 54.0
(214–206) (3×2×9)
Closing carrying amount 214.0 654.0

• The last revaluation was performed on 30 June 2022 by an independent firm of valuers. 2

• Measurement basis
All assets in investment property are subsequently measured at fair value.

• The revaluation was performed by an independent firm of valuers.

• Rental income
The rental income for the year ended 30 June 2022 is Rs. 26(10+4×4) million.

W-1: Revaluation of plant 2022 Rs. in million

Carrying value as on 30 June 2021 329
Revalued amount 304
Revaluation loss taken to P&L 25
Additional depreciation that would have been charged in 2022 [22.8(W-2)–20.8] (2)
Revaluation gain taken to P&L 23
Rs. in million
W-2: Book value of plant under cost basis
Cost as on 1 January 2021 340
Depreciation for 2021 (340–54)÷13×(6÷12) (11)
Depreciation for 2022 (329–44) ÷12.5 (22.8)
Book value as on 30 June 2022 (315–8.8) 306.2

Spring-22
Q.5 Following information pertains to property, plant and equipment of Tsuki Limited (TL):
Office building Warehouse
Acquisition:
(v) Date of acquisition 1 July 2017 1 July 2018
• Cost (Rs. in million) 96 156
• Estimated useful life (in years) 16 12
Revalued amount:
▪ 1 January 2019 (Rs. in million) 116 138
▪ 1 January 2021 (Rs. in million) 80 143
Revised useful life on 1 January 2020 (in years) 9 14
Additional information:
(i) TL uses revaluation model for subsequent measurement and accounts
for revaluation on net replacement value method.
(ii) TL transfers maximum possible amount from the revaluation surplus
to retained earnings on an annual basis.
(iii) The revalued amounts were determined by Sagheer Valuers (Private)
Limited, an independent valuation company.
 Required:
In accordance with IFRSs, prepare a note on ‘Property, plant and equipment’
(including comparative information) for inclusion in TL’s financial statements for the
year ended
31 December 2021. (Column for total is not required)
(18)
A.5 Tuski Limited
Notes to the financial statement for the year ended 31 December 2021

• Property, plant and equipment

2021 2020
Building Warehouse Building Warehouse
------------------------- Rs. in million -------------------------
Gross carrying amount - opening 116.00 138.00 116.00 138.00
Accumulated depreciation (20.00) (21.00) (8.00) (12.00)
(116÷14.5) (138÷11.5)
Opening carrying amount 96.00 117.00 108.00 126.00
Revaluation
- Surplus (16.00) 16.25
(96–80)
- P&L (W-1)9.75
Depreciation for the year (10.00) (11.00) (12.00) (9.00)
(80÷8) (143÷13) (108÷9) (126÷14)
Closing carrying amount 70.00 132.00 96.00 117.00

Gross carrying amount - closing 80.00 143.00 116.00 138.00

Accumulated depreciation (10.00) (11.00) (20.00) (21.00)
(8+12)
Closing carrying amount 70.00 132.00 96.00 117.00

Building Warehouse
Measurement base Revaluation Revaluation
Useful life 9 years 14 years
Depreciation method Straight line Straight line

1.1

• The last revaluation was performed on 1 January 2021 by Sagheer valuation

services, an independent firm of valuers.

• Had revaluations not been made, the carrying value of the buildings and
warehouse as on 31 December 2021 would have been Rs. 63 million and Rs. 117
million respectively.

W-1: Revaluation of warehouse 2021 Rs. in million

Carrying value as on 1 January 2019 156–6.5(156/12×6/12) 149.50
Revalued amount 138.00
Revaluation loss taken to P&L 11.50
Additional depreciation that would have been charged in:
2019 11.5/11.5 (1.00)
2020 (11.5–1)/14 (0.75)
Revaluation gain taken to P&L 9.75

W-2: Carrying value on cost basis Building Warehouse

----------- Rs. in million -----------
Book value on 1 January 2020 81.00 136.5
(96×13.5÷16) (156×10.5÷12)
Book value on 31 December 2021 63.00 117
(81×7÷9) (136.5×12÷14)
Autumn-21
Q.6 Following information pertains to non-current assets of Bunny Ear Limited (BEL):

Land:
In January 2019, the government allotted a piece of land to BEL subject to the
condition that BEL will establish a factory building on it. The land was recorded at its
fair value of Rs. 100 million.

Factory building:
On 1 March 2019, BEL started construction of the factory building. The construction
work was completed on 30 June 2020. Payments related to the construction of the
factory were as follows:

Description Date of payment Rs. in million

1st bill of contractor 1-Mar-2019 130
2nd bill of contractor 1-Aug-2019 190
3rd bill of contractor 1-Jan-2020 180
Last bill of contractor 1-Jul-2020 100

The project was financed through:

(i) government grant of Rs. 200 million received on 1 February 2019. Unused funds from
government grant were invested in a saving account @ 8% per annum.
(ii) withdrawals from the following running finance facilities obtained from Bank A and Bank
B. The relevant details are:
Bank A Bank B
Obtained on 1 January 2019 1 January 2020
Markup rate 12% 14%
-------- Rs. in million --------
Balance on 31 December 2019 250 -
Markup for 2019 22 -
Balance on 31 December 2020 350 200
Average balance during 2020 300 150
Markup for 2020 36 21

Manufacturing plant:
The manufacturing plant was purchased on 1 August 2020 at cost of Rs. 420 million.
Rs. 240 million was financed through an interest free loan from government. The loan
will be forgiven if the plant is operated for atleast 4 years by BEL. Upon acquisition,
there is a reasonable assurance that BEL will comply with this condition.

Other information:
• BEL uses cost model for subsequent measurement of property, plant and equipment.
• All government grants are recorded as deferred income and a part of it is transferred to
income each year.
• Useful life of the factory building and manufacturing plant has been estimated at 25 years
and 10 years respectively.

Required:
Prepare relevant extracts (including comparative figures) from BEL’s statement of
profit or loss for the year ended 31 December 2020 and statement of financial position
as on that date. (Notes to the financial statements are not required. Borrowing costs are to be
calculated on the basis
of number of months) (16)
A.6 Bunny Ear Limited
Extracts from statement of profit or loss for the year ended 31 December 2020
2020 2019
------ Rs. in million ------
Depreciation:
iii) Factory building 625÷25×6÷12 12.5 -
• Manufacturing plant 420÷10×5÷12 17.5 -

Income from saving account 1.3+2.3(W-2) - 3.6

 Grant income:
• Land 100÷25×6÷12 2.0 -
▪ Factory building 200÷25×6÷12 4.0
▪ Manufacturing plant 240÷10×5÷12 10.0

Interest expense (36+21–19); (22–6) 38.0 16.0

Extracts from statement of financial position as on 31 December 2020

2020 2019
------ Rs. in million ------
Non-current assets:
Property, plant and equipment
(iv) Land 100.0 100.0
(iv) Factory building 625(W-1)–12.5 612.5 -
▪ Manufacturing plant 420–17.5 402.5 -
▪ Capital work-in-process (W-1) - 326.0

Non-current liabilities:
Deferred government grant
▪ Land 100–2 98.0 100.0
▪ Factory building 200–4 196.0 200.0
▪ Manufacturing plant (forgivable loan) 240–10 230.0

Current liabilities:
▪ Running finance 350+200 550.0 250.0

W-1: Cost of factory building Rs. in

million
Payments in 2019 (130+190) 320.0
Borrowing cost capitalized in 2019 (W-2) 6.0
Balance as at 31 December 2019 326.0

Payments in 2020 (180+100) 280.0

Borrowing cost capitalized in 2020 (W-2) 19.0
625.0

W-2: Utilisation of fund

Dat Amoun No. of Amoun
Description Balance Rate
e t months t
1-Feb-19 Grant 200 200 8.00% 1 1.3
1-Mar-19 1st payment 130 70 8.00% 5 2.3
1-Aug-19 2nd payment 190 (120) 12.00% 5 6.0
1-Jan-20 3rd payment 180 (300) 12.67% 6 19.0

W-3: Capitalization rate

36+21 × 100 = 12.67%

300 + 150

Spring-21
Q.7 Sputnik Sea Limited (SSL) runs a cruise business across oceans. Following information in
respect of one of SSL’s cruise ship is available:

• SSL bought a cruise ship on 1 March 2018. After completing all

the required formalities, the ship was ready to sail on 1 April 2018.
• Details regarding components of the ship are as under:

Estimated residual
Component Cost Useful life value (Rs. in
(Rs. in million)
million)
Engine 840 50,000 hours 40
 Body 535 25 years 35
Dry-docking (overhaul) 60 5 years -

• On 1 May 2019, the ship suffered an accident which damaged its body. Repair work
took 2 months and costed Rs. 26 million. The repair work did not change useful life
and residual values of the components.

• The average monthly sailing of the ship during the last three years are as under:

Year Hours
2018 360
2019 480
2020 600

• SSL uses revaluation model for subsequent measurement. SSL accounts for revaluation
on net replacement value method and transfers the maximum possible amount from
the revaluation surplus to retained earnings on an annual basis.

• The revalued amounts of the ship as at 31 December 2019 and 2020 were determined
as Rs. 1,400 million and Rs. 1,000 million respectively. Revalued amounts are
apportioned between the components on the basis of their book values before the
revaluation.
Required:
Prepare necessary journal entries to record the above transaction from the date of acquisition
of the ship to the year ended 31 December 2020.
(17)
A.7 Sputnik Sea Limited
General Journal [Link] million
Dat Descripti Debit Credit
e on
01-03-2018 Cruise ship 1,435.00
Bank 1,435.00

31-12-2018 Depreciation expense (W-1) 75.84

Accumulated depreciation - Cruise ship 75.84

01-05-2019 Repair cost 26.00

Bank 26.00

31-12-2019 Depreciation expense (W-1) 108.80

Accumulated depreciation - Cruise ship 108.80

31-12-2019 Accumulated depreciation - Cruise ship 184.64

Cruise ship 75.84+108.80 184.64

31-12-2019 Cruise ship 149.64

Revaluation surplus 149.64

31-12-2020 Depreciation expense (W-1) 165.82

Accumulated depreciation - Cruise ship 165.82

31-12-2020 Revaluation surplus 165.82–147.20 (W-2) 18.62

Retained earnings 18.62

31-12-2020 Accumulated depreciation - Cruise ship 165.82

Cruise ship 165.82

31-12-2020 Revaluation surplus 149.64–18.62 131.02

Impairment loss (Bal. fig) 103.16
Cruise ship 1,234.18–1,000 234.18

W-1: [Link] million

Dat Description Engine Ship's Body Dry Docking Total
e
1/3/2018 Acquisition cost 840.0 535.0 60.0 1,435
31/12/18 Depreciation expense (51.84) (15.0) (9.0) (75.84)
(840–40)÷50,000×(360×9) (535–35)÷25×9÷12 60÷5×9/12

31/12/19 Depreciation expense (76.80) (20.0) (12.0) (108.80)

(840– (535–35)÷25 60÷5
40)÷50,000×(480×10)
 31/12/19 Carrying value 711.36 500.0 39.0 1,250.36
Revaluation surplus
(Bal. 149.64
)
31/12/19 Revalued amount 796.49 559.84 43.67 1,400.00
31/12/20 Depreciation expense (129.81) (22.57) (13.44) (165.82)
(796.38–40)÷(50,000–3240 (559.84–35)÷(25–1.75) 43.67÷(5–1.75)
–4,800)×(600×12)
31/12/20 Carrying value 666.68 537.27 30.23 1,234.18

W-2: Depreciation on cost for 2020

Engine (840–40)÷50,000×(600×12) 115.20
Body (535–35)÷25 20.00
Dry docking 60÷5 12.00
147.20