On January 1, 2021, GGG, Inc. purchased an equipment for P10,400,000. Residual value was P800,000 and useful life was for 10 years. On December 31, 2024, the equipments replacement cost had increased to P16,000,000 while its residual value was reduced to P400,000. GGG appraised the equipment and the process resulted to the original life being revised to 12 years. 1) How much is the revaluation surplus recognized on December 31, 2024? A. 3,200,000 B. 5,200,000 C. 3,360,000 D. 9,360,000

2) How much is the 2025 depreciation? A. 780,000 B. 960,000 C. 1,040,000 D. 1,170,000