At 1 April 20X8 Swizzle had a property in its financial statements that had originally cost $27.5 million (land $2.5 million, buildings $25 million), and now had accumulated buildings depreciation of $10 million. On 1 April 20X8, the directors decided to revalue the land and buildings for the first time, and accepted the report of an independent surveyor who valued the land at $4 million and the buildings at $19.5 million on that date. The remaining life of the buildings at 1 April 20X8 was 15 years.
What will be the amount of depreciation charged to profit or loss for the year ended 31 March 20X9?
A. $1,300,000
B. $1,666,667
C. $1,833,333
D. $1,566,667