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TGIF Company owned a building on January 01, 2019, with historical cost of P52,000,000. The property is depreciated over 40 years on a straight-line basis with no residual value. The entity adopted a policy of revaluation of property. The building had so far been revalued twice at fair value. The fair values of the building are as follows: January 01, 2020 – P60,840,000; January 01, 2022 – P72,150,000. How much is the revaluation surplus to be reported in the statement of changes in equity for the year ended December 31, 2022? A. 23,660,000 B. 24,570,000 C. 24,050,000 D. 23,400,000

TGIF Company owned a building on January 01, 2019, with historical cost of P52,000,000. The property is depreciated over 40 years on a straight-line basis with no residual value. The entity adopted a policy of revaluation of property. The building had so far been revalued twice at fair value. The fair values of the building are as follows: January 01, 2020 – P60,840,000; January 01, 2022 – P72,150,000. How much is the revaluation surplus to be reported in the statement of changes in equity for the year ended December 31, 2022? A. 23,660,000 B. 24,570,000 C. 24,050,000 D. 23,400,000

FINANCIAL ACCOUNTING
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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TGIF Company owned a building on January 01, 2019, with historical cost of P52,000,000. The property is depreciated over 40 years on a straight-line basis with no residual value. The entity adopted a policy of revaluation of property. The building had so far been revalued twice at fair value. The fair values of the building are as follows: January 01, 2020 – P60,840,000; January 01, 2022 – P72,150,000.

How much is the revaluation surplus to be reported in the statement of changes in equity for the year ended December 31, 2022?

A. 23,660,000

B. 24,570,000

C. 24,050,000

D. 23,400,000

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