HOW MUCH IS THE BALANCE OF REVALUATION SURPLUS ON DECEMBER 31, 2020? HOW MUCH IS THE DEPRECIATION EXPENSE ON 2020? Problem 29-5 (ACP),(AAD) V-es moldo14Cherry Company acquired a building on January 1, 2017 at acost of P20,000,000. The building has an estimated useful life of6 years and residual value of P2,000,000.letalThe building was revalued on January 1, 2020 and therevaluation revealed replacement cost of P30,000,000, residualvalue of P4,000,000 and revised useful life of 8 years.

Revaluation Surplus Any increases in the worth of capital investments are kept in an equity account…

Answered: MUCH IS THE BALANCE OF REVALUATION…

Business

Accounting

MUCH IS THE BALANCE OF REVALUATION SURPLUS ON DECEMBER 31, 2020? HOW MUCH IS THE DEPRECIATION EXPENSE ON 2020?

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

HOW MUCH IS THE BALANCE OF REVALUATION SURPLUS ON DECEMBER 31, 2020?
HOW MUCH IS THE DEPRECIATION EXPENSE ON 2020?

Problem 29-5 (ACP),
(AAD) V-es moldo14
Cherry Company acquired a building on January 1, 2017 at a
cost of P20,000,000. The building has an estimated useful life of
6 years and residual value of P2,000,000.
letal
The building was revalued on January 1, 2020 and the
revaluation revealed replacement cost of P30,000,000, residual
value of P4,000,000 and revised useful life of 8 years.

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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