On 1 January,broncos Plc Paid €20 Million for a Tract

Question 50
Multiple Choice

On 1 January,Broncos Plc paid €20 million for a tract of land with a building.The building was in a bad condition and had to be refurbished for another €2 000 000.The adjacent vacant land is valued at €15 000 000.It is expected that the building will be in use for at 20 years.What is the depreciation expense for the first year? A)€100 000 B)€250 000 C)€350 000 D)€1 100 000