Kingsnake Company acquired a machine on January 1, 2019, at a cost of P120,000. It was expected to have a useful economic life of 10 years. Kingsnake uses the calendar year basis. On December 31, 2021, the machine was appraised as having a gross replacement cost of P150,000. Kingsnake applies the revaluation model in valuing this class of property, plant and equipment after its initial recognition. 3) How much should be credited to revaluation surplus on December 31, 2021? A . 30,000 B. 105,000 C. 21,000 D. 9,000
Kingsnake Company acquired a machine on January 1, 2019, at a cost of P120,000. It was expected to have a
useful economic life of 10 years. Kingsnake uses the calendar year basis. On December 31, 2021, the machine
was appraised as having a gross replacement cost of P150,000. Kingsnake applies the revaluation model in
valuing this class of property, plant and equipment after its initial recognition.
3) How much should be credited to revaluation surplus on December 31, 2021?
A
.
30,000 B. 105,000 C. 21,000 D. 9,000
4) What is the balance of the revaluation surplus account on December 31, 2022 assuming that piecemeal
realization of revaluation surplus is in order?
A
.
30,000 B. 21,000 C. 18,000 D. 15,000
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