2/22/2021 Q8-Accounting Changes (page 1 of 30)

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Question 1
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Amaya company was incorporated on January 1, 2016 and follow FFRS in preparing its
financial statements. In preparing its financial statements for the year ended December 31,
2018, Amaya company used the following original cost and useful lives for its property, plant
and equipment. Original cost Useful life in years
Building 18,000,000 15 Machinery
12,600,000 10 Furniture 4,200,000 7On
January 1, 2019, the entity decided to review the useful lives of the property, plant and
equipment. For this purpose the entity hired external valuation experts who certified that the
remaining useful lives of the property, plant and equipment at the beginning of 2019 are as
follows:Building 10 yearsMachinery 7 yearsFurniture 5
yearsAmaya company uses the straight line method of depreciation with no residual value.
What is the total depreciation for 2019?

Select one:
a. 3,060,000
b. 3,180,000
c. 4,200,000
d. 4,440,000

Clear my choice

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