On January 1, 2022, Joji Co. revalued its machinery with a cost of P12,000,000, acquired 4 years ago with an estimated useful life of 20 years and has been estimated to have a replacement cost of P14,000,000. The machinery is estimated to have a remaining useful life of 25 years as of January 1, 2022. On January 2, 2024, the machinery was sold with a net proceeds of P10,000,000. Questions: 1. How much is the revaluation surplus on January 1, 2022? 2. How much is the depreciation expense for 2022? 3. How much is the balance of the revaluation surplus at the end of 2022?

On January 1, 2022, Joji Co. revalued its machinery with a cost of P12,000,000, acquired 4 years ago with an estimated useful life of 20 years and has been estimated to have a replacement cost of P14,000,000. The machinery is estimated to have a remaining useful life of 25 years as of January 1, 2022. On January 2, 2024, the machinery was sold with a net proceeds of P10,000,000. Questions: 1. How much is the revaluation surplus on January 1, 2022? 2. How much is the depreciation expense for 2022? 3. How much is the balance of the revaluation surplus at the end of 2022?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, 2022, Joji Co. revalued its machinery with a cost of P12,000,000, acquired 4 years ago with an estimated useful life of 20 years
and has been estimated to have a replacement cost of P14,000,000. The machinery is estimated to have a remaining useful life of 25 years
as of January 1, 2022.
On January 2, 2024, the machinery was sold with a net proceeds of P10,000,000.
Questions:
1. How much is the revaluation surplus on January 1, 2022?
2. How much is the depreciation expense for 2022?
3. How much is the balance of the revaluation surplus at the end of 2022?

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