PROBLEM 29 - 9

1. What is the revaluation surplus on June 30, 2020?

a. 135,000,000 Solution:
b. 125,000,000 Land
c. 120,000,000 Building
d. 160,000,000 Revaluation Surplus

2. What is the depreciation of the building for 2020?

a. 30,000,000 Solution:
b. 35,000,000 Jan 1, 2020 - June 30, 2020
c. 40,000,000 July 1,2020 - Dec 31, 2020
d. 32,000,000 Depreciation of Building 2020

3. What is the revaluation surplus on December 31, 2020?

a. 125,000,000 Solution:
b. 130,000,000 Beg. Revaluation Surplus - 1/1/20
c. 123,750,000 Annual Depreciation
d. 115,000,000 Revaluation Surplus - 12/31/20
₱ 15,000,000
120,000,000
₱ 135,000,000

Depreciation on July 1 - Dec 31

₱ 15,000,000 Sound Value/12 years
20,000,000 450,000,000/12 years ₱ 40,000,000
₱ 35,000,000 40,000,000*6/12 ₱ 20,000,000

₱ 135,000,000 Revaluation Surplus

-5,000,000 120,000,000/12 years ₱ 10,000,000
₱ 130,000,000 10,000,000*6/12 ₱ 5,000,000