How much is the total revaluation surplus recognized

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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?

a. 4,774,000

b. 2,986,000

c. 4,012,000

d. 3,874,000

Reference no: EM132931733

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