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Lincon Company owned a building on January 01, 2019, with historical cost of P52,000,000. The property is depreciated over 40 years on a straight-line basis with no residual value. The entity adopted a policy of revaluation of property. The building had so far been revalued twice at fair value. The fair values of the building are as follows: January 01, 2020 – P60,840,000; January 01, 2022 – P72,150,000. How much is the revaluation surplus to be reported in the statement of changes in equity for the year ended December 31, 2022?

Lincon Company owned a building on January 01, 2019, with historical cost of P52,000,000. The property is depreciated over 40 years on a straight-line basis with no residual value. The entity adopted a policy of revaluation of property. The building had so far been revalued twice at fair value. The fair values of the building are as follows: January 01, 2020 – P60,840,000; January 01, 2022 – P72,150,000. How much is the revaluation surplus to be reported in the statement of changes in equity for the year ended December 31, 2022?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Lincon Company owned a building on January 01, 2019, with historical cost of P52,000,000. The property is depreciated over 40 years on a straight-line basis with no residual value. The entity adopted a policy of revaluation of property. The building had so far been revalued twice at fair value. The fair values of the building are as follows: January 01, 2020 – P60,840,000; January 01, 2022 – P72,150,000.

How much is the revaluation surplus to be reported in the statement of changes in equity for the year ended December 31, 2022?

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