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Question - Light Company bought a machine for P300, 000 on January 1, 20x8. The machine's useful life is 10 years and it is estimated to have a zero residual value and is depreciated using the straight line method.
The revalued amount of the machine is as follows:
December 31 Fair value of the machine
20x8 P360,000
20x9 P335,000
20x10 P320,000
The enacted tax rate was 30% of each year
Find the revaluation surplus in the equity section of Light Company's December 31, 2x10 statement of financial position?
a. 109,500
b. 110,000
c. 77,000
d. 123,443
e. Answer not given
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