EXERCISE 2 Luke Company acquired equipment on January 1, 20x1, for P120,000. Luke elects to value this class of equipment using revaluation accounting. This equipment is being depreciated on a straight-line basis over its 6-year useful life. There is no residual value at the end of the 6-year period. The appraised value of the equipment approximates the carrying amount at December 31, 20x1 and 20x3. On December 31, 20x2, the fair value of the equipment is determined to be P70,000. Required 1. Prepare the necessary journal entries for 20x1 and 20x2. EXERCISE 3 On January 1, 20x1, Contentious Company provided the following information related to the land and Land building: 50,000,000 450,000,000 60,000,000 Building Accumulated depreciation - building There were no additions or disposals during the current year. Depreciation is computed using straight line over 15 years for building. On December 31, 20x1, the land and building were revalued. Land Building Replacement cost 65,000,000 600,000,000 Sound Value 65,000,000 480,000,000 Required: 1. Prepare the journal entries for 20x1 and 20x2 related to the building and land. EXERCISE 4 Pie Company reported an equipment on January 1, 20x1, with a historical cost of P8,500,000. It has an original useful life of 10 years with residual value of P500,000 when it was acquired four years ago. On same date, the equipment has a replacement cost of P12,400,000, residual value is estimated to be P400,000 and revised useful life is 12 years from date of acquisition. Pie elected to value this class of equipment using revaluation accounting. Required: 1. Prepare the journal entries for 20x1 related to the equipment.

EXERCISE 2 Luke Company acquired equipment on January 1, 20x1, for P120,000. Luke elects to value this class of equipment using revaluation accounting. This equipment is being depreciated on a straight-line basis over its 6-year useful life. There is no residual value at the end of the 6-year period. The appraised value of the equipment approximates the carrying amount at December 31, 20x1 and 20x3. On December 31, 20x2, the fair value of the equipment is determined to be P70,000. Required 1. Prepare the necessary journal entries for 20x1 and 20x2. EXERCISE 3 On January 1, 20x1, Contentious Company provided the following information related to the land and building: Land Building Accumulated depreciation-building 50,000,000 450,000,000 60,000,000 There were no additions or disposals during the current year. Depreciation is computed using straight line over 15 years for building. On December 31, 20x1, the land and building were revalued. Land Building Required: Replacement cost 65,000,000 600,000,000 Sound Value 65,000,000 480,000,000 1. Prepare the journal entries for 20x1 and 20x2 related to the building and land. EXERCISE 4 Pie Company reported an equipment on January 1, 20x1, with a historical cost of P8,500,000. It has an original useful life of 10 years with residual value of P500,000 when it was acquired four years ago. On same date, the equipment has a replacement cost of P12,400,000, residual value is estimated to be P400,000 and revised useful life is 12 years from date of acquisition Pie elected to value this class of equipment using revaluation accounting Required: 1. Prepare the journal entries for 20x1 related to the equipment.