On Jan. 1, 2016, ABC Corporation bought an equipment for P10,000,000. It has a residual value of P1,000,000 and is being depreciated over 30 years. On Jan. 1, 2021, ABC revalued the asset. Its fair value was unavailable but the same equipment is being sold for P15,000,000. Based on the manufacturer, the revised residual value is P1,500,000. 1. Carrying value of the equipment on Jan. 1, 2016 before revaluation 2. Sound value of the equipment 3. Revaluation Surplus to be reported in the Statement of Comprehensive Income for the year ended Dec 31, 2021.
On Jan. 1, 2016, ABC Corporation bought an equipment for P10,000,000. It has a residual value of P1,000,000 and is being depreciated over 30 years. On Jan. 1, 2021, ABC revalued the asset. Its fair value was unavailable but the same equipment is being sold for P15,000,000. Based on the manufacturer, the revised residual value is P1,500,000. 1. Carrying value of the equipment on Jan. 1, 2016 before revaluation 2. Sound value of the equipment 3. Revaluation Surplus to be reported in the Statement of Comprehensive Income for the year ended Dec 31, 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On Jan. 1, 2016, ABC Corporation bought an equipment for
P10,000,000. It has a residual value of P1,000,000 and is being
On Jan. 1, 2021, ABC revalued the asset. Its fair value was
unavailable but the same equipment is being sold for P15,000,000.
Based on the manufacturer, the revised residual value is
P1,500,000.
1. Carrying value of the equipment on Jan. 1, 2016 before
revaluation
2. Sound value of the equipment
3. Revaluation Surplus to be reported in the Statement of
Comprehensive Income for the year ended Dec 31, 2021.
4. Revaluation Surplus to be reported in the
Financial Position
5. Depreciation expense for the year ended Dec. 31, 2021
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