On January 1, 2021, Peaceful Company reported the following account balances relating to property, plant and equipment: Land, P 4,000,000; Building, P 30,000,000, with Accumulated Depreciation of P 7,500,000. Assets have been carried at cost since acquisition. All assets were acquired on January 1, 2021. The straight-line method is used. On January 1, 2021, the entity decided to revalue the property, plant and equipment. On such date, competent appraisers submitted the following (at replacement cost): Land, P10,000,000; Building, P 50,000,000. What is the revaluation surplus on January 1, 2021? P 15,000,000 P 6,000,000 P 30,000,000 P 21,000,000
On January 1, 2021, Peaceful Company reported the following account balances relating to property, plant and equipment: Land, P 4,000,000; Building, P 30,000,000, with Accumulated Depreciation of P 7,500,000. Assets have been carried at cost since acquisition. All assets were acquired on January 1, 2021. The straight-line method is used. On January 1, 2021, the entity decided to revalue the property, plant and equipment. On such date, competent appraisers submitted the following (at replacement cost): Land, P10,000,000; Building, P 50,000,000. What is the revaluation surplus on January 1, 2021? P 15,000,000 P 6,000,000 P 30,000,000 P 21,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2021, Peaceful Company reported the following account balances relating to property, plant and equipment: Land, P 4,000,000; Building, P 30,000,000, with
Assets have been carried at cost since acquisition. All assets were acquired on January 1, 2021. The straight-line method is used.
On January 1, 2021, the entity decided to revalue the property, plant and equipment. On such date, competent appraisers submitted the following (at replacement cost): Land, P10,000,000; Building, P 50,000,000.
What is the revaluation surplus on January 1, 2021?
P 15,000,000
P 6,000,000
P 30,000,000
P 21,000,000
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