An asset was acquired on January 1, 2020 for P800,000 and is expected to have a 5-year useful life. The straight-line method was used. On January 1, 2022, the asset was deemed to have a sound value of P720,000. The company uses the elimination method in accounting for any revaluation surplus. The replacement cost of the asset at January 1, 2022 is

An asset was acquired on January 1, 2020 for P800,000 and is expected to have a 5-year useful life. The straight-line method was used. On January 1, 2022, the asset was deemed to have a sound value of P720,000. The company uses the elimination method in accounting for any revaluation surplus. The replacement cost of the asset at January 1, 2022 is

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

An asset was acquired on January 1, 2020 for P800,000 and is expected to
have a 5-year useful life. The straight-line method was used. On January 1,
2022, the asset was deemed to have a sound value of P720,000. The
company uses the elimination method in accounting for any revaluation
surplus.
The replacement cost of the asset at January 1, 2022 is

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