Determine what is the revaluation surplus on december

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On January 1, 2019, HH Company reported the following account balances pertaining to property, plant, and equipment:

Land 2,000,000

Building 15,000,000

Accumulated depreciation 3,750,000

Machinery 3,000,000

Accumulated depreciation 1,500,000

Assets have been carried at cost since their acquisition. All assets were acquired on January 1, 2009. The straight-line method is used. On January 1, 2019, the entity decided to revalue the property, plant, and equipment.

On such date, competent appraisers submitted the following:

Replacement cost Land 5,000,000

Building 25,000,000

Machinery 5,000,000

REQUIRED:

Problem 1. What is the revaluation surplus on January 1, 2019?

Problem 2. What is the depreciation for the current year?

Problem 3. What is the revaluation surplus on December 31, 2019?

Reference no: EM132779067

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