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ool Company owns an equipment costing P5,200,000 with original residual value of P400,000. The life of the asset is 10 years and was depreciated using the straight-line method. The equipment has a replacement cost of P8,000,000 with residual value of P200,000. The age of the asset is 4 years. The appraisal of the equipment showed a total revised useful life of 12 years and the company decided to carry the equipment at revalued amount. 1. Cool should initially report revaluation surplus in shareholder’s equity at -- 2. The subsequent annual depreciation should be

ool Company owns an equipment costing P5,200,000 with original residual value of P400,000. The life of the asset is 10 years and was depreciated using the straight-line method. The equipment has a replacement cost of P8,000,000 with residual value of P200,000. The age of the asset is 4 years. The appraisal of the equipment showed a total revised useful life of 12 years and the company decided to carry the equipment at revalued amount. 1. Cool should initially report revaluation surplus in shareholder’s equity at -- 2. The subsequent annual depreciation should be

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Cool Company owns an equipment costing P5,200,000 with original residual value of P400,000. The life of the asset is 10 years and was depreciated using the straight-line method. The equipment has a replacement cost of P8,000,000 with residual value of P200,000. The age of the asset is 4 years. The appraisal of the equipment showed a total revised useful life of 12 years and the company decided to carry the equipment at revalued amount.

1. Cool should initially report revaluation surplus in shareholder’s equity at --

2. The subsequent annual depreciation should be --

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