How much is the total revaluation surplus recognized

Assignment Help Accounting Basics

Reference no: EM132916897

Question

A building acquired 15 years ago for P8,000,000 is currently estimated to have a replacement cost of P12,000,000, effective life of 10 years and a remaining economic life of 30 years. The building was originally depreciated on a straight-line basis over a useful life of 25 years.

A patio was added to the building 10 years ago for a total cost of P3,000,000. The addition was originally estimated to have a useful life 20 years. The patio is currently estimated to have a replacement cost of P4,200,000, an effective life of 10 years and a remaining economic life of 15 years. The entity is subject to an income tax rate of 30%. How much is the total revaluation surplus recognized on the revaluation date?

Reference no: EM132916897

Questions Cloud

Accounting for the life membership fund : Explalion the accounting discussions for subscription and subscription fees - what is meant by other fund accounting in financial accounting

What is the project IRR and MIRR : A Project has a cost of $65,000 and it's expected cash inflows are $12,000 per year for 9 years and the cost of capital is 10%. What is the project IRR and MIRR

Explain uncover or generate leads : Assume that you have just opened a new bakery, with average pricing of bread higher than other bakeries in your neighbourhood. How will you uncover or generate

Calculate luis shop cash flow from operations : The firm's cash account was P950,000 at the beginning of 20X5 and P1,025,000 at the end of the year. Calculate Luis Shop's cash flow from operations for 20X5.

How much is the total revaluation surplus recognized : How much is the total revaluation surplus recognized on the revaluation date and remaining economic life of 15 years. The entity is subject to an income tax

What amount will reported on year-end financial statements : The new policy began on October 1, 2020. What amount will be reported on the 2020 year-end financial statements for "insurance expense"

What are the free cash flows for a firm : What is the difference between net cash flow from operating activities, net cash flow from investing activities and net cash flow from financing activities?

Pick at least two motivation theories : Pick at least two motivation theories that you think might be used to motivate Joseph in this situation. Specifically explain why you think these theories woul

Compare idealist with individualist : Where are these styles complementary, and in what ways do these styles differ?

User Account

All Pages