What is the revaluation surplus on december

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Question - On January 1, 2019, FAIR TRADE Inc. purchased a machinery for P1,200,000. The machinery is depreciated using the straight line method using 10 years useful life with no residual value. FAIR company's accounting policy is revaluation model every three years. On January 1, 2022, the machinery was revalued at a replacement cost of P1,800,000. Net income before tax during 2022 is P2,000,000. Income tax rate is 30%.

Q1. What is the Revaluation surplus on December 31, 2022?

1. P420,000

2. P294,000

3. P252,000

4. P360,000

Q2. What is the current tax expense for 2022?

1. P618,000

2. P600,000

3. P612,600

4. P564,000

Q3. What is the income tax expense for 2022?

1. P618,000

2. P600,000

3. P612,600

4. P564,000

Reference no: EM133175591

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