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On January 1, 200A, Cool Company owned an equipment costing P5,200,000 with residual value of P400,000. The life of the asset is 10 years and
On January 1, 200A, Cool Company owned an equipment costing P5,200,000 with residual value of P400,000. The life of the asset is 10 years and was depreciated using the straight line method. On such date, the equipment has a replacement cost of P8,000,000 with residual value of P200,000. The age of the asset is 4 years. The appraisal of the equipment showed a total revised useful life of 12 years and the entity decided to carry the equipment at revalued amount. What amount should be reported as pretax revaluation surplus on January 1, 200A
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