Please help me to answer this problem. Thank you 3. Adelle Company finished construction of its building on January 1, 2013 at a total cost of P25,000,000. Thebuilding was depreciated over its estimated useful life of 20 years using the straight-line method with no resid-ual value. The building was subsequently revalued on December 31, 2016 and the revaluation report showedthat the asset had a replacement cost of P32,000,000 and was determined to have no change in its useful life.Adelle's tax rate is 30%. On January 1, 2018, the building was tested for recoverability and the fair value wasdetermined to be P18,000,000 on this date, with no change on its remaining useful life.1. What amount of revaluation surplus will be recognized on December 31, 2016?а. 5,600,000b. 3,920,000c. 3,675,000d. 5,250,0002. What is the revaluation surplus on December 31, 2017?а. 3,675,000b. 8,400,000c. 7,875,000d. 5,250,0003. What amount of impairment loss shall be recognized in 2018?750,000b. 6,000,000с. 2,325,000d. 4,000,000а.4. What is the depreciation on the building for the year ended December 31, 2017?а. 1,125,000b. 1,200,000c. 1,600,000d. 2,000,000

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1. What amount of revaluation surplus will be recognized on December 31, 2016? a. 5,600,000 b. 3,920,000 c. 3,675,000 d. 5,250,000 2. What is the revaluation surplus on December 31, 2017?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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