On December 31, 2019, IT’S OKAY NOT TO BE OKAY COMPANY subjected to impairment test its trademark. Data pertinent to the equipment as of December 31, 2019 follow: • Original Cost – P2,400,000 • Adjusted accumulated depreciation – 600,000 • Original Useful life- 8 years • Selling price – 1,400,000 • Estimated cost to make the sale – 200,000 • Value in use – 1,100,000 • Remaining useful life – 6 years • Method of depreciation – straight-line On December 31, 2021, the asset is found to have a recoverable amount of P1,400,000. How much is the revaluation surplus to be recognized by 2021?
On December 31, 2019, IT’S OKAY NOT TO BE OKAY COMPANY subjected to impairment test its trademark. Data pertinent to the equipment as of December 31, 2019 follow: • Original Cost – P2,400,000 • Adjusted accumulated depreciation – 600,000 • Original Useful life- 8 years • Selling price – 1,400,000 • Estimated cost to make the sale – 200,000 • Value in use – 1,100,000 • Remaining useful life – 6 years • Method of depreciation – straight-line On December 31, 2021, the asset is found to have a recoverable amount of P1,400,000. How much is the revaluation surplus to be recognized by 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On December 31, 2019, IT’S OKAY NOT TO BE OKAY COMPANY subjected to impairment test its trademark. Data pertinent to the equipment as of December 31, 2019 follow:
• Original Cost – P2,400,000
• Adjusted
• Original Useful life- 8 years
• Selling price – 1,400,000
• Estimated cost to make the sale – 200,000
• Value in use – 1,100,000
• Remaining useful life – 6 years
• Method of depreciation – straight-line
On December 31, 2021, the asset is found to have a recoverable amount of P1,400,000.
How much is the revaluation surplus to be recognized by 2021?
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