1. The revaluation surplus in the equity section of Light Company’s December 31, 20x8 statement of financial position is ____________ 2. The amount of depreciation expense to be recognized in 20x9 is ___________ 3. The amount of revaluation surplus transferred to retained earnings in 20x9 is __________
1. The revaluation surplus in the equity section of Light Company’s December 31, 20x8 statement of financial position is ____________ 2. The amount of depreciation expense to be recognized in 20x9 is ___________ 3. The amount of revaluation surplus transferred to retained earnings in 20x9 is __________
Chapter9: Capital Budgeting And Cash Flow Analysis
Section9.A: Depreciation
Problem 5P
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1. The revaluation surplus in the equity section of Light Company’s December 31, 20x8
2. The amount of
3. The amount of revaluation surplus transferred to
4. The revaluation surplus in the equity section of Light Company's December 31, 2x10 statement of financial position is _____________
![Light Company bought a machine for P300,000 on January 1, 20x8. The machine's useful life is 10
years and it is estimated to have a zero residual value and is depreciated using the straight-line
method.
The revalued amount of the machine is as follows:
December 31
Fair values of the machine
20x8
20x9
2x10
P 360,000
335,000
320,000
The enacted tax rate was 30% for each year](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc760ed1b-ecaa-4c61-99f2-0be0b2c21d88%2F04c08459-9f38-4a73-8373-7a7c3038f863%2Fhn2ugmk_processed.png&w=3840&q=75)
Transcribed Image Text:Light Company bought a machine for P300,000 on January 1, 20x8. The machine's useful life is 10
years and it is estimated to have a zero residual value and is depreciated using the straight-line
method.
The revalued amount of the machine is as follows:
December 31
Fair values of the machine
20x8
20x9
2x10
P 360,000
335,000
320,000
The enacted tax rate was 30% for each year
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