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ADC company Has all equipment acquired off January 1, 2010 at a Cost of P2200000, residual value of P200,000 and 20 years estimated useful life.

ADC company Has all equipment acquired off January 1, 2010 at a Cost of P2200000, residual value of P200,000 and 20 years estimated useful life. On December 31, 2021, the replacement cost of the equipment turned P2,500,000 and the revised useful life is 24 years. Round off percentage to whole number and to nearest peso if you are required to gross up. 


Assuming the equipment is sold on January 1, 2024 for P1,800,000, determine the total impact to retained earnings of the equity section because of the transaction. (indicate the word increase or decrease after the amount such as this 100,000 increase)

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