Information on Mix Co's equipment on June 30, 20x8 is shown below:

Equipment (at cost) - P500,000

Accumulated Depreciation- P150,000

Total - P350,000

The equipment consists of two machines, Machine A and Machine B. Machine A 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 P170,000. Both machines are measured using the cost model and depreciated on a straight-line basis oven a ten-year period.

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

Fair Value

Remaining Useful Life

Machine A

P180,000

6 years

Machine B

P155,000

5 years

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 is 30%.

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

a. Answer not given

b. P10,500

c. P7,000

d. (P10,500)

e. (P15,000)