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how much is the revaluation surplus to be recognized on Dec. 31 2021?

how much is the revaluation surplus to be recognized on Dec. 31 2021?

FINANCIAL ACCOUNTING
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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how much is the revaluation surplus to be recognized on Dec. 31 2021?
On January 1, 2020, G Corp. purchased a unit of equipment for P20,000,000. The asset is estimated to have a useful life of 20 years with no residual value. On December 31, 2021, G Corp. gathered information concluding that the asset's sound value increased to P36,000,000. However, two years after, on December 31, 2023, the fair value of the equipment dropped to P20,000,000. The entity also revised its remaining useful life to 10 years.
Transcribed Image Text:On January 1, 2020, G Corp. purchased a unit of equipment for P20,000,000. The asset is estimated to have a useful life of 20 years with no residual value. On December 31, 2021, G Corp. gathered information concluding that the asset's sound value increased to P36,000,000. However, two years after, on December 31, 2023, the fair value of the equipment dropped to P20,000,000. The entity also revised its remaining useful life to 10 years.
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