Question
An entity acquired a building on January 1, 2016 at a cost of P20,000,000. The building had a useful life of 6 years and residual
An entity acquired a building on January 1, 2016 at a cost of P20,000,000. The building had a useful life of 6 years and residual value of P2,000,000. The building was revalued on January 1, 2019 and revaluation revealed replacement cost of P30,000,000, residual value of P4,000,000 and revised useful life of 8 years from the date of acquisition.
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a. What is the pretax revaluation surplus on January 1, 2019?
b. What is the pretax revaluation surplus on December 31, 2019?
c. What is the annual depreciation for 2019?
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