On June 30, 2016, Loft Company reported the following information:

Equipment at cost5,000,000

Accumulated depreciation1,500,000

The equipment was measured using the cost model and depreciated on a straight line basis over a 10-year period.

On December 31, 2016, the management decided to change the basis of measuring the equipment from the cost model to the revaluation model. The equipment had a fair value of P4,550,000 with remaining useful life of 5 years on December 31, 2016.

Before income tax, what amount should be reported as revaluation surplus on December 31, 2016?

1,500,000

1,300,000

1,050,000

2,000,000

What is the depreciation of the equipment for 2017?

500,000

455,000

650,000

910,000

Before income tax, what amount should be reported as revaluation surplus on December 31, 2017?

390,000

845,000

1,040,000

1,170,000