On January 1, 2014, Raven Company acquired a building at cost of P5,000,000. The building has been depreciation on the basis of a 20-year life. On January 1, 2019, an appraisal of the building showed replacement cost at P8,000,000 with no change in useful life. On January 1, 2019, an appraisal of the building showed replacement cost at P8,000,000 with no change in useful life. Before income tax, what amount should be credited to revaluation surplus on January 1, 2019? A. 3,000,000 B. 2,250,000 C. 4,250,000 D. 6,000,000 What amount should be recorded as depreciation for 2019? A. 250,000 B. 150,000 C. 400,000 D. 300,000 What is the revaluation surplus that should be reported in the December 31, 2019 statement of financial position? A. 2,100,000 B. 2,250,000 C. 1,850,000 D. 2,800,000
On January 1, 2014, Raven Company acquired a building at cost of P5,000,000. The building has been depreciation on the basis of a 20-year life. On January 1, 2019, an appraisal of the building showed replacement cost at P8,000,000 with no change in useful life. On January 1, 2019, an appraisal of the building showed replacement cost at P8,000,000 with no change in useful life. Before income tax, what amount should be credited to revaluation surplus on January 1, 2019? A. 3,000,000 B. 2,250,000 C. 4,250,000 D. 6,000,000 What amount should be recorded as depreciation for 2019? A. 250,000 B. 150,000 C. 400,000 D. 300,000 What is the revaluation surplus that should be reported in the December 31, 2019 statement of financial position? A. 2,100,000 B. 2,250,000 C. 1,850,000 D. 2,800,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On January 1, 2014, Raven Company acquired a building at cost of P5,000,000. The building has been depreciation on the basis of a 20-year life. On January 1, 2019, an appraisal of the building showed replacement cost at P8,000,000 with no change in useful life. On January 1, 2019, an appraisal of the building showed replacement cost at P8,000,000 with no change in useful life.
Before income tax, what amount should be credited to revaluation surplus on January 1, 2019?
A. 3,000,000
B. 2,250,000
C. 4,250,000
D. 6,000,000
What amount should be recorded as depreciation for 2019?
A. 250,000
B. 150,000
C. 400,000
D. 300,000
What is the revaluation surplus that should be reported in the December 31, 2019 statement of financial position ?
A. 2,100,000
B. 2,250,000
C. 1,850,000
D. 2,800,000
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