1. On June 30, 20x9, Machine A and Machine B have fair values of P163,000 and P136,500, respectively, and remaining useful lives of 5 years and 4 years, respectively. The tax rate rate is 30%

How much is the revaluation surplus on December 31, 20x8?

Answer not given

P10,500

P(10,500)

P7,000

P(15,000)

2. Entity A acquires equipment on January 1, 20x1. Information on costs is as follows:

Purchase price, gross of P10,000 trade discount 800,000

Non-refundable purchase taxes 20,000

Delivery and handling costs 40,000

Installation costs 30,000

Present value of decommissioning

and restoration costs 10,000

How much is the initial cost of the equipment?

P 890,000

P 820,000

P 900,000

P 870,000

Answer not given

3. Quezon Co. records purchases at net amounts. On May 5 Quezon purchased merchandise on account, P32,000, terms 2/10, n/30. Quezon returned P2,000 of the May 5 purchase and received credit on account. At May 31 the balance had not been paid.

The amount recorded as a purchase return is

P1,960

P2,040

Answer not given

P1,800

P2,000