Solution-What amount should be reported in the shareholder

What amount should be reported in the shareholder equity

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Reference no: EM132856372

Question - An intangible asset is acquired on January 1, 2018, for P500,000 while it has a legal life of 15 years, due to rapidly changing technology, management estimates a useful life of only 5 years. At January 1, 2019, management is uncertain that the process can actually be made economically feasible and decides to write-down the intangible asset to an estimated market value of P150,000 with no change in its remaining useful life. On January 1, 2020, having perfected the related production process, the asset is now appraised at a sound value of P600,000. Under the revaluation model, what amount should be reported in the shareholder's equity as a result of revaluation?

a. P-0-

b. P187,500

c. P250,000

d. P300,000

Reference no: EM132856372

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What amount should be reported in the shareholder equity

Reference no: EM132856372

Reference no: EM132856372

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