STRAIGHT Company accounts for non-current assets using the revaluation model. On October 1, 2022, the entity classified a freehold property as held for sale. At that date, the carrying amount was P2,200,000 and the balance of revaluation surplus was P1,200,000. At the same date, the fair value was estimated at P2,900,000 and the cost of disposal at P220,000.
STRAIGHT Company accounts for non-current assets using the revaluation model. On October 1, 2022, the entity classified a freehold property as held for sale. At that date, the carrying amount was P2,200,000 and the balance of revaluation surplus was P1,200,000. At the same date, the fair value was estimated at P2,900,000 and the cost of disposal at P220,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
At what amount should the revaluation surplus be reported on December 31, 2022 in the statement of changes in equity?
![STRAIGHT Company accounts for non-current assets using the revaluation model. On October 1, 2022, the entity
classified a freehold property as held for sale. At that date, the carrying amount was P2,200,000 and the balance
of revaluation surplus was P1,200,000. At the same date, the fair value was estimated at P2,900,000 and the
cost of disposal at P220,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F39626923-0ac1-41fa-a618-c8f49742141f%2Fc837cac5-5eb6-47f9-8274-0295dbeafbc7%2Flszc4g_processed.png&w=3840&q=75)
Transcribed Image Text:STRAIGHT Company accounts for non-current assets using the revaluation model. On October 1, 2022, the entity
classified a freehold property as held for sale. At that date, the carrying amount was P2,200,000 and the balance
of revaluation surplus was P1,200,000. At the same date, the fair value was estimated at P2,900,000 and the
cost of disposal at P220,000.
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