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On January 1, 2019, ABC Company reported the following account balances relating to property, plant and equipment: Land 2,000,000 Building 15,000,000 Accumulated depreciation 3,750,000 Machinery

On January 1, 2019, ABC Company reported the following account balances relating to property, plant and equipment:

Land 2,000,000

Building 15,000,000

Accumulated depreciation 3,750,000

Machinery 3,000,000

Accumulated depreciation 1,500,000

Assets have been carried at cost since acquisition. All assets were acquired on January 1, 2009. The straight line method is used.

On January 1, 2019, the entity decided to revalue the property, plant and equipment.

On such date, competent appraisers submitted the following :

Replacement cost

Land 2,000,000

Building 15,000,000

Machinery 3,000,000

____1. What is the revaluation surplus on January 1, 2019?

A. 15,000,000

B. 11,500,000

C. 30,000,000

D. 8,500,000

____2. What is the depreciation for the current year?

A. 531,250

B. 875,000

C. 525,000

D. 625,000

____3. What is the revaluation surplus on December 31, 2019?

A. 11,075,000

B. 11,150,000

C. 11,050,000

D. 10,850,000

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