On December 31, 20x1, Ala-Phi Co.'s building with a historical cost of P40,000,000 and accumulated depreciation...

 

Transcribed Image Text:

On December 31, 20x1, Ala-Phi Co.'s building with a historical cost of P40,000,000 and accumulated depreciation of P16,000,000 was determined to have a replacement cost of P50,000,000. Additional information follows: Actual life Remaining historical life Effective life 10 years 15 years 8 years Remaining economic life 24 years 30% Income tax rate How much are (1) the revaluation surplus, net of tax, and (2) the revised annual depreciation under the straight line method subsequent to the date of revaluation? On December 31, 20x1, Ala-Phi Co.'s building with a historical cost of P40,000,000 and accumulated depreciation of P16,000,000 was determined to have a replacement cost of P50,000,000. Additional information follows: Actual life Remaining historical life Effective life 10 years 15 years 8 years Remaining economic life 24 years 30% Income tax rate How much are (1) the revaluation surplus, net of tax, and (2) the revised annual depreciation under the straight line method subsequent to the date of revaluation?

Answer rating: 100% (QA)

Answer To calculate the revaluation surplus net of tax and the revised annual depreciation under the ... View the full answer