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On January 1, year 1, Laagan Company owned a building with historical cost of 32,000,000 depreciated over a 40 year life on a straight line

On January 1, year 1, Laagan Company owned a building with historical cost of

32,000,000 depreciated over a 40 year life on a straight line method. Revaluation model was

adopted by the entity in measuring its property, plant and equipment. The building has already

been revalued twice with the following fair values:

January 1, Year 2 37,440,000

January 1, Year 4 44,400,000

Required:

125

1. What is the revaluation surplus on January 1, Year 2?

2. What is the increase in revaluation surplus to be recognized as component of other

comprehensive income on January 1, year 4?

3. What is the revaluation surplus to be reported in the statement of changes on December 31,

Year 4?

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