Reference no: EM133002499
Blue Corporation showed land with a P10,000,000 carrying value and a building with a P60,000,000 cost and P18,000,000 accumulated depreciation, on Jan. 1, 2021. On the same day, the land and building were revalued, revealing that the fair value of the property was P15,000,000 and the building was P70,000,000.
The building's original usable life is 20 years, and depreciation is calculated on a straight-line. The income tax rate is set at 30%. (Hint: Use the tax rate when calculating the revaluation surplus.)
Problem 1: On Jan. 1, 2021, how much is the revaluation surplus?
Problem 2: On Dec. 31, 2021, how much is the revaluation surplus?
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