On June 30, 2020, Happy Corporation reported the following information: Equipment at cost Accumulated depreciation 30,000,000 10,500,000 The equipment was measured using the cost model and depreciated on a straight line basis over 10-year period. On December 31, 2020, the management decided to change the basis of measuring the equipment from the cost model to the revaluation model. The equipment was revalued to the fair value of P27,000,000 with remaining useful life of 5 years. The income tax rate is 30%. What amount should be reported as revaluation surplus on December 31, 2020?

On June 30, 2020, Happy Corporation reported the following information: Equipment at cost Accumulated depreciation 30,000,000 10,500,000 The equipment was measured using the cost model and depreciated on a straight line basis over 10-year period. On December 31, 2020, the management decided to change the basis of measuring the equipment from the cost model to the revaluation model. The equipment was revalued to the fair value of P27,000,000 with remaining useful life of 5 years. The income tax rate is 30%. What amount should be reported as revaluation surplus on December 31, 2020?

Name: On June 30, 2020, Happy Corporation reported the following informatio
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Description: On June 30, 2020, Happy Corporation reported the following information:Equipment at costAccumulated depreciation30,000,00010,500,000The equipment was measured using the cost model and depreciated on a straight line basis over 10-yearperiod. On Decem

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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