On Jan. 1, 2020, DEF Corporation acquired a P2,000,000 equipment which it accounts under the revaluation model. It can be used in the production line for 10 years. After use, it can be sold for P250,000. On Jan. 1, 2023, DEF is revaluing the asset. It has a sound value of P2,250,000 and a revised residual value of P500,000. If DEF uses the proportional method, what is the journal entry on Jan. 1, 2023 to record the revaluation? How much is the revaluation surplus to be recognized?
On Jan. 1, 2020, DEF Corporation acquired a P2,000,000 equipment which it accounts under the revaluation model. It can be used in the production line for 10 years. After use, it can be sold for P250,000. On Jan. 1, 2023, DEF is revaluing the asset. It has a sound value of P2,250,000 and a revised residual value of P500,000. If DEF uses the proportional method, what is the journal entry on Jan. 1, 2023 to record the revaluation? How much is the revaluation surplus to be recognized?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On Jan. 1, 2020, DEF Corporation acquired a P2,000,000 equipment which it accounts under the revaluation model. It can be used in the production line for 10 years. After use, it can be sold for P250,000.
On Jan. 1, 2023, DEF is revaluing the asset. It has a sound value of P2,250,000 and a revised residual value of P500,000.
If DEF uses the proportional method, what is the
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