Building Cost, Jan, 2017 ₱ 6,600,000.

00 Building
Residual Value ₱ -
Useful Life 15
Depreciation per Year ₱ 440,000.00

Building Cost, Dec, 2020 ₱ 6,600,000.00

Accumulated Depreciation ₱ 1,760,000.00 Building
Book Value, Dec 2020 ₱ 4,840,000.00

Fair Value as of Jan 2021 ₱ 5,800,000.00 Accumulated Depreciation

Remaining Life as of Jan 2021 11
Depreciation per Year ₱ 527,272.73
Gross up Value as of Jan 2017 ₱ 7,909,090.91
(Dep'n/year x 4years lapsed) +
Fair Value as of Jan 2021
Building ₱ 1,309,090.91
Accumulated Depreciation ₱ 349,090.91
Revaluation Surplus ₱ 960,000.00
To record the Restatement of the accumulated depreciation proportionately with the
change in the AQUA COMPANY Company's carrying amount of the asset.

Building ₱ 960,000.00
Revaluation Surplus ₱ 960,000.00
To record the restatement of the building using the netting method
Accumulated Depreciation ₱ 1,760,000.00
Building ₱ 1,760,000.00
To record the restatement of the building using the netting method
Building Cost, Jan, 2017 ₱ 660,000.00 Gross Up Approach
Residual Value ₱ -
Useful Life 12 2019
Depreciation per Year ₱ 55,000.00 Building

Building Cost, Dec, 2018 ₱ 660,000.00

Accumulated Depreciation ₱ 110,000.00
Book Value, Dec 2018 ₱ 550,000.00 Depreciation Expense
Revaluation Amount ₱ 575,000.00

Building Cost, Dec, 2019 ₱ 690,000.00 2020

Accumulated Depreciation ₱ 172,500.00 Building
Book Value, Dec 2019 ₱ 517,500.00
Revaluation Amount ₱ 540,000.00

Depreciation Expense

2021
Building Cost, Dec, 2020 ₱ 720,000.00 Building
Accumulated Depreciation ₱ 240,000.00
Book Value, Dec 2020 ₱ 480,000.00
Revaluation Amount ₱ 515,000.00

Depreciation Expense
Gross Up Approach Netting Approach

2019
Building ₱ 30,000.00 Accumulated Depreciation
Accumulated Depreciation ₱ 5,000.00
Revaluation Surplus ₱ 25,000.00 Building

Depreciation Expense ₱ 57,500.00

Accumulated Depreciation ₱ 57,500.00 Depreciation Expense

2020
Building ₱ 30,000.00 Accumulated Depreciation
Accumulated Depreciation ₱ 7,500.00
Revaluation Surplus ₱ 22,500.00 Building

Depreciation Expense ₱ 60,000.00

Accumulated Depreciation ₱ 60,000.00 Depreciation Expense

Building ₱ 52,500.00 Accumulated Depreciation

Accumulated Depreciation ₱ 17,500.00
Revaluation Surplus ₱ 35,000.00 Building

Depreciation Expense ₱ 64,375.00

Accumulated Depreciation ₱ 64,375.00 Depreciation Expense
Netting Approach

Accumulated Depreciation ₱ 110,000.00

Building ₱ 110,000.00
Building ₱ 25,000.00
Revaluation Surplus ₱ 25,000.00

Depreciation Expense ₱ 57,500.00

Accumulated Depreciation ₱ 57,500.00

Accumulated Depreciation ₱ 57,500.00

Building ₱ 57,500.00
Building ₱ 22,500.00
Revaluation Surplus ₱ 22,500.00

Depreciation Expense ₱ 60,000.00

Accumulated Depreciation ₱ 60,000.00

Accumulated Depreciation ₱ 60,000.00

Building ₱ 60,000.00
Building ₱ 35,000.00
Revaluation Surplus ₱ 35,000.00

Depreciation Expense ₱ 64,375.00

Accumulated Depreciation ₱ 64,375.00