REVALUATION

PROBLEM #8 On January 1, 2019, HH Company reported the following account balances pertaining to property, plant, and equipment: Land 2,000,000 Building 15,000,000 Accumulated depreciation 3,750,000 Machinery 3,000,000 Accumulated depreciation 1,500,000 Assets have been carried at cost since their acquisition. All assets were acquired on January 1, 2009. The straight-line method is used. On January 1, 2019, the entity decided to revalue the property, plant, and equipment. On such date, competent appraisers submitted the following: Replacement cost Land 5,000,000 Building 25,000,000 Machinery 5,000,000 REQUIRED: 1. What is the revaluation surplus on January 1, 2019? 2. What is the depreciation for the current year? 3. What is the revaluation surplus on December 31, 2019