Question
A building has an initial cost of ₹10,00,000,
accumulated depreciation of ₹5,50,000, and current fair value of ₹6,50,000. What is the revaluation surplus?Solution
• Carrying amount = Cost − Accumulated depreciation = 10,00,000 − 5,50,000 = ₹4,50,000 • Revaluation surplus = Fair value − Carrying amount = 6,50,000 − 4,50,000 = ₹2,00,000
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