Lorna Company provided the following data for its machinery:

COSTAPPRAISED VALUE

Machinery655,000975,000

_{Salvage Value}75,00075,000

Accumulated Depreciation 116,000150,000

Age of Asset2 years

The machinery was sold for P800,000 two years after the appraisal.

Required:

1.Life per appraisal

2.Condition percent

3.Revaluation increment in property

4.Annual depreciationafter appraisal

5.Gain (loss) on sale of machinery

6.Journal entryto record the following:

a.Revaluation

b.Depreciation subsequent to revaluation

c.Sale of machinery