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How much is the gain or loss to be presented in financial

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Reference no: EM132769338

On January 2, 2020, Peter Sawyer Inc., acquired building for $100,000 from a company based in Australia. The building estimated useful life is 10 years. Peter Sawyer Inc. uses the straight-line method of depreciation and revaluation model. On December 31, 2020, the building revaluation amount was determined at net appraised value of $120,000. The relevant exchange rates are as follows:

January 1, 2020 $1=P30

December 31, 2020 $1=P32

Problem 1: How much is the gain or loss to be presented in the financial statement on December 31, 2020?

Group of answer choices

a. P40,000 Forex gain

b. P200,000 Revaluation surplus-OCI

c. P200,000 Forex gain

d. P1,140,000 Revaluation surplus-OCI

Reference no: EM132769338

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