Reference no: EM132933763

Question - On December 31, 20x1, Ala-Phi Co.'s building with a historical cost of P40,000,000 and accumulated depreciation of P16,000,000 was determined to have a replacement cost of P50,000,000. Additional information follows:

Actual life. 10 years

Remaining historical life. 15 years

Effective life. 8 years

Remaining economic life. 24 years

Income tax rate. 30%

How much are (1) the revaluation surplus, net of tax, and (2) the revised annual depreciation under the straight line method subsequent to the date of revaluation?

a. 9,450,000; 1,562,500

b. 9,450,000; 2,500,000

c. 13,500,000; 1,562,500

d. 13,500,000; 2,500,000