Yellow plc revalues its plant and equipment (P&E) every two years. It is company policy to charge a full year's deprecia

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Yellow Plc Revalues Its Plant And Equipment P E Every Two Years It Is Company Policy To Charge A Full Year S Deprecia 1 (66.57 KiB) Viewed 20 times

Yellow plc revalues its plant and equipment (P&E) every two years. It is company policy to charge a full year's depreciation in the year of acquisition and none in the year of disposal. . 1 January 2006: P&E was purchased at £780,000, and is depreciated at 20% per annum using the reducing balance method. 31 December 2007: P&E revalued to £550,000, with the remaining useful life revised to 4 years and the depreciation method being changed to straight line. . Show how the P&E would be reflected in Yellow's financial statements for the year ending 31 December 2006 and 2007 and how depreciation charge for P&E in 2008 should be.