MODULE NUMBER 6 (PPE REVALUTION)

Question no. 1
January 1 - June 30
Building 450,000,000
Useful life 15
30,000,000
6 months 1/2
Depreciation expense 15,000,000

Total depreciation for the year 2019

January 1 - June 30 15,000,000
July 1 - December 31 20,000,000
35,000,000

Question no. 2
Building
Carrying amount (450M-90M) 360,000,000

Revalued amount 480,000,000

Revaluation Surplus 6/30/2019 120,000,000

Revaluation Surplus 6/30/2019 120,000,000

(120M/12 yrs) 10,000,000

Revaluation Surplus- Building 12/31/2019 110,000,000

Question no. 3

Cost 50,000,000

Accumulated Depreciation (45M/10 yrs x 4 yrs) - 1,800,000

Carrying Amount 12/31/18 48,200,000

Cost 1/01/19 76,880,000

Accumulated Depreciation (76.88M-2M/8) - 9,360,000
Carrying amount 12/31/19 67,520,000

Question no. 4
Carrying Amount 48,200,000
Revalued Amount 76,880,000
Revaluation Surplus 1/01/19 28,680,000

Revaluation Surplus 1/01/19 28,680,000

(28.68M/8) 3,585,000
Revaluation Surplus 12/31/2019 25,095,000

Question no. 5
Gain on Reversal (2M-1.6M) 140,000
Impairment Loss - Building 260,000

Carrying amount - Equipment 800,000

Revauled amount 900,000
Revaluation Surplus -equipment 12/31/18 100,000

Impairment Loss - Building (P/L) 260,000

Gain on Reversal (P/L) 140,000
Revaluation Surplus - Equipment (OCI) 100,000
net amount to be recognized in SCI 2018 - 20,000

Question no. 6
Building
Cost 1/01/19 1,600,000
Accumulated Depreciation
(1.6M / 25 yrs) - 64,000
(900K / 4 yrs)
Carrying amount 12/31/19 1,536,000

Question no. 7
Revaluation Surplus - Equipment 1/01/19 100,000
(100K / 4 yrs) - 25,000
Revaluation Surplus - Equipment 12/31/19 75,000

Question no. 8
D. The gain that should be recorded in profit and loss is P10,000; the P20,000 revaluation surplus may be transferred to retain
July 1 - December 31
Building 600,000,000
Useful life 15
40,000,000
6 months 1/2
20,000,000

Land
Carrying Amount 20,000,000

Revalued Amount 35,000,000

Revulation Surplus 15,000,000

Revaluation Surplus - Building 110,000,000

Revaluation Surplus - Land 15,000,000
Revaluation Surplus
12/31/2019 125,000,000

Replacement Cost 80,000,000

Accumulated Depreciation
( 80M-2M/10 yrs x 4 yrs) - 3,120,000
Revalued Amount 12/31/18 76,880,000
 Equipment Total
900,000 2,500,000
-
- 64,000
- 225,000 - 225,000
675,000 2,211,000

,000 revaluation surplus may be transferred to retained earnings