1. Information on Mix Co. on June 30,20x8 is shown below:

• Equipment (at cost) P500,000
• Accumulated depreciation 150,000
• P350,000
• The equipment consists of two machines, Machine A and Machine B has a cost of P300,000 and a carrying amount of P180,000. Machine B has a cost of P200,000 and a carrying amount of P170,000. Both machines are measured using the cost model and depreciated on a straight-line basis over a ten-year period.

On December 31,20x8, Mix Co. decided to change from the cost to revaluation model. Information on this date follows:

Fair Values Remaining useful life

Machine A P180,000 6yrs

Machine B P155,000 5 yrs

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

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

• Answer not given
• (P10,500)
• (P15,000)
• P7,000
• P10,500