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Question - The account balances relating to PPE of Cycle Company on January 1, 2009 are as follows:
Land 2,000,000
Building 15,000,000
Accumulated Depreciation - Building 3,750,000
Machinery 1,500,000
Assets have been carried at cost since their acquisition. All assets were acquired on January 1, 2004. The straight line method is used. On January 1, 2009, the entity wishes to show PPE at revalued amount. On that date, competent appraisers submitted the following Replacement Costs:
Land 5,000,000
Building 25,000,000
Machinery 5,000,000
Required - How much is the revaluation surplus on date of revaluation?
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