LaPerm Company reported the following account balances on December 31, 2021 Land 15,000,000 Building 120,000,000 Accumulated depreciation 40,000,000 Property, plant, and equipment have been carried using the cost model since acquisition. The land was acquired 15 years ago while the building’s construction was completed on January 1, 2012. The straight line method for depreciation is used. The total life of the building is 30 years. On January 1, 2022, the entity adopted the revaluation model. It was determined that the land’s current fair value is P25,000,000 and the building’s current replacement cost is P150,000,000 on such date. What is the revaluation surplus on December 31, 2022? A . 29,000,000 B. 30,000,000 C. 28,500,000 D. 19,500,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question

LaPerm Company reported the following account balances on December 31, 2021
Land 15,000,000
Building 120,000,000
Accumulated depreciation 40,000,000
Property, plant, and equipment have been carried using the cost model since acquisition. The land was
acquired 15 years ago while the building’s construction was completed on January 1, 2012. The straight
line method
for depreciation is used. The total life of the building is 30 years. On January 1, 2022, the entity
adopted the revaluation model. It was determined that the land’s current fair value is P25,000,000 and the
building’s current replacement cost is P150,000,000 on such date. What is the revaluation surplus on
December 31, 2022?
A
.
29,000,000 B. 30,000,000 C. 28,500,000 D. 19,500,000

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Depreciation Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education