On January 1, 2022, Days & Days Corp. purchased an asset for P2,000,000 with an estimated...

 

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On January 1, 2022, Days & Days Corp. purchased an asset for P2,000,000 with an estimated useful life of 10 years. Straight line method of depreciation is to be used. On December 31, 2023, it was properly determined that the recoverable amount of the asset is P1,280,000. On December 31, 2024, it was properly computed that the recoverable amount of the asset is P1,480,000. 1. Under the cost model for long-lived assets, what are the amounts to be reported in the profit or loss statement and shareholders' equity, respectively, immediately on December 31, 2024? 2. Under the revaluation model for long-lived assets, what are the amounts to be reported in the profit or loss and shareholders' equity on December 31, 2024? On January 1, 2022, Days & Days Corp. purchased an asset for P2,000,000 with an estimated useful life of 10 years. Straight line method of depreciation is to be used. On December 31, 2023, it was properly determined that the recoverable amount of the asset is P1,280,000. On December 31, 2024, it was properly computed that the recoverable amount of the asset is P1,480,000. 1. Under the cost model for long-lived assets, what are the amounts to be reported in the profit or loss statement and shareholders' equity, respectively, immediately on December 31, 2024? 2. Under the revaluation model for long-lived assets, what are the amounts to be reported in the profit or loss and shareholders' equity on December 31, 2024?

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