Problem 16-10 (IFRS) On January 1, 2017, Easy Company acquired an equipment for P8,000,000 The equipment is depreciated using straight line method based on a useful life of 8 years with no residual value. On January 1, 2020, after 3 years, the equipment was revalued at a replacement cost of P12,000,000 with no change in the useful life. The pretax accounting income before depreciation for 2020 is P10,000,000 The income tax rate is 30% and there are no other temporary differences at the beginning of the year. Required: 1. Prepare journal entry to record the revaluation on January 1, 2020 2. Prepare journal entry to record the deferred tax liability on January 1, 2020 3. Prepare journal entry to record the current tax expense for 2020 4. Prepare the adjustment of the deferred tax liability on December 31, 2020 5. Prepare the adjustment of the revaluation surplus on December 31, 2020, 6. Present the income tax expense in the income statement for 2020. Problem 16-10 (IFRS) On January 1, 2017, Easy Company acquired an equipment for P8,000,000 The equipment is depreciated using straight line method based on a useful life of 8 years with no residual value. On January 1, 2020, after 3 years, the equipment was revalued at a replacement cost of P12,000,000 with no change in the useful life. The pretax accounting income before depreciation for 2020 is P10,000,000 The income tax rate is 30% and there are no other temporary differences at the beginning of the year. Required: 1. Prepare journal entry to record the revaluation on January 1, 2020 2. Prepare journal entry to record the deferred tax liability on January 1, 2020 3. Prepare journal entry to record the current tax expense for 2020 4. Prepare the adjustment of the deferred tax liability on December 31, 2020 5. Prepare the adjustment of the revaluation surplus on December 31, 2020, 6. Present the income tax expense in the income statement for 2020