Job Company purchased a building on January 1, 2016, for P 9,000,000. At the date of purchase, it was estimated to have a useful life of 15 years. The building was depreciated using the straight-line method. On January 1, 2021, the building was estimated to have a replacement cost of P12,000,000. The tax rate is 30%. What amount net of tax should be credited to the revaluation surplus on January 1, 2021?

a. 1,400,000 

b.1,800,000 

c.2,000,000 

d.3,000,000

Under the proportional method, the entries of Job Company in January 2021 will include the following? and what amount should be reported as depreciation in 2021?

Answer rating: 100% (QA)

b1800000 Amount net of tax should be credited to revaluation surplus in ... View the full answer