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Question - Booster Co purchased a building on 1 January 2010 for P1,250,000. At acquisition, the useful life of the building was 50 years. Depreciation is calculated on the straight-line basis. On 1 January 2020, the building was revalued to P1,600,000. Booster Co has a policy of transferring the excess depreciation on revaluation from the revaluation surplus to retained earnings.
Assuming no further revaluations take place, what is the balance on the revaluation surplus at 31 December 2020?
a. P341,250 c. P600,000
b. P350,000 d. P585,000
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