Reference no: EM133052334
Questions -
Q1. The following are available from Pinkish Gambino: Machinery Equipment Cost of Acquisition P560,000 P140,000
Estimated Salvage Value 60,000 20,000
Date of Acquisition January 1, 2020 July 1, 2020
Estimated Life 10 years 5 years
On October 1, 2023, the above machinery was sold for P400,000 while the equipment could no longer be used on March 31, 2023 and the company received P50,000 from the insurers in full settlement of the claim.
How much is the net gain or net loss from the disposal of the assets above?
Q2. A machinery costing P8,500,000 was purchased on January 1, 2020 and had a useful life of 10 years, with residual value of P500,000. On January 1, 2024, the replacement cost of the machinery is deemed to be P12,400,000. The entity estimated that the revised useful life should be 12 years from date of acquisition and that the residual value should be P400,000 on this date.
The revaluation surplus for the year 2024 to be recognized in the statement of comprehensive income should be?