Reference no: EM132602275
Question - Information on Mix Co's equipment on June 30, 20x8 is shown below:
Equipment (at cost) - P500,000
Accumulated Depreciation- P150,000
Total - P350,000
The equipment consists of two machines, Machine A and Machine B. Machine A has a cost of P300,000 and a carrying amount of P180,000. Machine B has a cost of P200,000 and a carrying amount P170,000. Both machines are measured using the cost model and depreciated on a straight-line basis oven a ten-year period.
On December 31, 20x8, Mix Co. decided to change from the cost model to the revaluation model. Information on this date follows:
Fair Value Remaining Useful Life
Machine A P180,000 6 years
Machine B P155,000 5 years
On June 30, 20x9, Machine A and Machine B have fair values of P163,000 and P136,500, respectively and remaining useful lives of 5 years and 4 years, respectively. The tax rate is 30%.
How much is the revaluation surplus on December 31, 20x8?
a. Answer not given
b. P10,500
c. P7,000
d. (P10,500)
e. (P15,000)
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