On December 31, 2020, Patty Corp. subjected to impairment test a building which was the company's

factory site. Because of the expected decline the demand for the company's product, the company

deemed it necessary to test the said building for possible impairment loss. Data pertinent to the

building on this date were as follows:

Original cost Accumulated depreciation as at January 1, 2020Selling price Estimated cost to make the sale Annual net cash flows from the assets continued useP24,000,000

6,000,000

12,200,000

600,000

2,249,328

Remaining useful life as at the beginning of the year 9 years

Method of depreciation Straight-line

Salvage value Negligible

Prevailing pre-tax discount rate as of 12/31/2020 10%

On December 31, 2022, the company used the appraisal model to value all its buildings, as single

class. This building was found to have a fair market value of P13.2M.

Requirements:

1. How much loss on impairment is recognized in 2020?

2. How much is the depreciation expense recognized in 2021?

3. How much gain on recovery is recognized in 2022 income statement?

4. How much is the depreciation expense recognized in 2023 under the appraisal model of valuing

the property?

5. What is the balance of the revaluation surplus as of December 31, 2023?

6. How much is the depreciation expense recognized in 2023 had cost model been used in valuing

the property