Solution-What amount of revaluation surplus should be

What amount of revaluation surplus should be reported on dec

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Reference no: EM132772477

The entity reported the following account balances relating to property, plant and equipment on January 1, 2019:

Building 120,000,000

Accumulated depreciation 40,000,000

The building had been carried using the cost model since acquisition on January 1, 2009. The straight-line method for depreciation was used. The total life of the building is 30 years. On January 1, 2019, the entity revalued the building with replacement cost of P150,000,000. The income tax rate is 30%.

Problem 1: What amount of revaluation surplus should be recognized on January 1, 2019?

a. 30,000,000 c. 20,000,000

b. 21,000,000 d. 14,000,000

Problem 2: What amount of depreciation should be recognized in 2019?

a. 5,000,000 c. 4,000,000

b. 7,500,000 d. 1,500,000

Problem 3: What amount of revaluation surplus should be reported on December 31, 2019?

a. 14,000,000 c. 21,000,000

b. 13,300,000 d. 19,950,000

Reference no: EM132772477

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What amount of revaluation surplus should be reported on dec

Reference no: EM132772477

Reference no: EM132772477

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