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Light Company bought a machine for P300,000 on January 1, 20x8. The machine's useful life is 10 years and it is estimated to have a
Light Company bought a machine for P300,000 on January 1, 20x8. The machine's useful life is 10 years and it is estimated to have a zero residual value and is depreciated using the straight-line method.
The revalued amount of the machine is as follows:
December 31 Fair values of the machine
20x8 P360,000
20x9 335,000
2x10 320,000
The enacted tax rate was 30% for each year
The revaluation surplus in the equity section of Light Company's December 31, 20x8 statement of financial position is
- P90,000
- P63,000
- P39,000
- Answer not given
- P60,000
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