Reference no: EM132999055
On January 1, 2020, BTS Corp. purchased a unit of equipment for P20,000,000. The asset is estimated to have a useful life of 20 years with no residual value. On December 31, 2021, BTS Corp. gathered information concluding that the asset's sound value increased to P36,000,000. However, two years after, on December 31, 2023, the fair value of the equipment dropped to P20,000,000. The entity also revised its remaining useful life to 10 years.
Problem 1: How much is the revaluation surplus to be recognized on December 31, 2021?
Problem 2: How much is the revaluation deficit/impairment loss to be recognized on the Income Statement as of December 31, 2023?
Problem 3: How much is the depreciation expense for December 31, 2024?
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