For the next 3 questions.. What amount should be reported as pretax revaluation surplus on December 31, 2019? A. 2,000,000B. 1,300,000C. 1,500,000D. 1,050,000 What amount should be recorded as depreciation of the equipment for 2020? A. 2,000,000B. 1,000,000C. 3,000,000D. 500,000 What amount should be reported as pretax revaluation surplus on December 31, 2021? A. 2,000,000B. 1,600,000C. 0D. 1,200,000 On January 1, 2019, Louisiana Company reported the following information:Equipment at cost5,000,000Accumulated depreciation1,500,000The equipment was measured using the cost model and depreciated on a straight-line basis over a 10-year period.On December 31, 2019, the management decided to change the basis of measuring the equipment fromthe cost model to the revaluation model.The equipment had a fair value of P5,000,000 with remaining useful life of 5 years on December 31,2019.

For the next 3 questions.. What amount should be reported as pretax revaluation surplus on December 31, 2019? A. 2,000,000 B. 1,300,000 C. 1,500,000 D. 1,050,000 What amount should be recorded as depreciation of the equipment for 2020? A. 2,000,000 B. 1,000,000 C. 3,000,000 D. 500,000 What amount should be reported as pretax revaluation surplus on December 31, 2021? A. 2,000,000 B. 1,600,000 C. 0 D. 1,200,000

For the next 3 questions.. What amount should be reported as pretax revaluation surplus on December 31, 2019? A. 2,000,000 B. 1,300,000 C. 1,500,000 D. 1,050,000 What amount should be recorded as depreciation of the equipment for 2020? A. 2,000,000 B. 1,000,000 C. 3,000,000 D. 500,000 What amount should be reported as pretax revaluation surplus on December 31, 2021? A. 2,000,000 B. 1,600,000 C. 0 D. 1,200,000

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

For the next 3 questions..

What amount should be reported as pretax revaluation surplus on December 31, 2019?

A. 2,000,000

B. 1,300,000

C. 1,500,000

D. 1,050,000

What amount should be recorded as depreciation of the equipment for 2020?

A. 2,000,000

B. 1,000,000

C. 3,000,000

D. 500,000

What amount should be reported as pretax revaluation surplus on December 31, 2021?

A. 2,000,000

B. 1,600,000

C. 0

D. 1,200,000

On January 1, 2019, Louisiana Company reported the following information:
Equipment at cost
5,000,000
Accumulated depreciation
1,500,000
The equipment was measured using the cost model and depreciated on a straight-line basis over a 10-
year period.
On December 31, 2019, the management decided to change the basis of measuring the equipment from
the cost model to the revaluation model.
The equipment had a fair value of P5,000,000 with remaining useful life of 5 years on December 31,
2019.

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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