An asset was acquired on January 1, 2020 for P800,000 and is expected to have a 5-year useful life. The straight-line method was used. On January 1, 2022, the asset was deemed to have a sound value of P720,000. The company uses the elimination method in accounting for any revaluation surplus. The replacement cost of the asset at January 1, 2022 is

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
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An asset was acquired on January 1, 2020 for P800,000 and is expected to
have a 5-year useful life. The straight-line method was used. On January 1,
2022, the asset was deemed to have a sound value of P720,000. The
company uses the elimination method in accounting for any revaluation
surplus.
The replacement cost of the asset at January 1, 2022 is
Transcribed Image Text:An asset was acquired on January 1, 2020 for P800,000 and is expected to have a 5-year useful life. The straight-line method was used. On January 1, 2022, the asset was deemed to have a sound value of P720,000. The company uses the elimination method in accounting for any revaluation surplus. The replacement cost of the asset at January 1, 2022 is
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