What is the amount of total charges to profit or loss

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Reference no: EM132661459

On January 1, 2019, an entity showed land with carrying amount of P10,000,000 and building with cost of P60,000,000 and accumulated depreciation of P18,000,000. The land and building were revalued on same date and revealed the fair value of land at P15,000,000 and the building at P70,000,000.

The original useful life of the building is 20 years and depreciation is computed on the straight line. The income tax rate is 30%.

Problem 1: What is the revaluation surplus on December 31, 2019?

Problem 2: What is the amount of total charges to profit or loss in 2019?

Reference no: EM132661459

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