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  3. synergy ltd. purchased an equipment on january 1,

Synergy Ltd. purchased an equipment on January 1, Year 1 for 200,000. The equipment has...

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Accounting

  1. Synergy Ltd. purchased an equipment on January 1, Year 1 for 200,000. The equipment has a four-year life, no residual value, and is depreciated on a straight line basis. On January 1, Year 2, the company conducted its first revaluation when the fair value was 240,000.

    What was Year 2 depreciation expenses under IFRS and under U.S.GAAP, respectively?

    A.

    Under IFRS: $50,000; Under U.S.GAAP: $50,000
    B.

    Under IFRS: $80,000; Under U.S.GAAP: $50,000.
    C.

    Under IFRS: $80,000; Under U.S.GAAP: $80,000.
    D.

    Under IFRS: $60,000; Under U.S.GAAP: $50,000.

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