Revaluation adjusts depreciation base and remaining life

Steps:

• Original annual depreciation: $100,000 / 25 years =$4,000.
• Depreciation for 2013–2017: 5 years × $4,000 =$20,000 accumulated.
• Carrying amount at 1 Jan 2018: $100,000 -$20,000 = $80,000.
• Revalued to $120,000; remaining life: 25 - 5 = 20 years.
• 2018 depreciation: $120,000 / 20 years =$6,000.

Why D is correct:

• IAS 16 requires straight-line depreciation on revalued amount over remaining useful life.

Why the others are wrong:

• A: Ignores revaluation, uses original $4,000 rate.
• B: Incorrect hybrid; no basis in straight-line post-revaluation.
• C: Applies original cost to remaining life, skipping revalued amount.

Final answer: D