Problem 3

Intermediate Accounting 1B (2019 Edition by Zeus Vernon B. Milan): Property, Plant and Equipment A building with a historical cost of P20,000,000 and accumulated depreciation of P7,200,000 has an actual age of 15 years, an estimated effective age of 10 years, and a remaining economic life of 30 years. The replacement cost is P34,000.000. the building is being depreciated using the straight-line method. The income tax rate is 30%. Requirements: a. Provide the entry to record the revaluation under each of the following methods; 1 . Proportional method ii. Elimination method b. Compute for the annual depreciation in periods subsequent to the revaluation date