The following figures have been extracted from the accounting records of the Twitch Corporation on...
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Accounting
The following figures have been extracted from the accounting records of the Twitch Corporation on December 31, 2019:
Cost Accumulated Depreciation
25-year leasehold factory P50,000,000 P10,000,000
15-year leasehold factory 30,000,000 10,000,000
On January 1, 2020 Twitch had its two leasehold factories revalued (for the first time) by an independent surveyor as follows:
25-year leasehold P52,000,000
15-year leasehold 18,000,000
Twitch depreciates its leaseholds on a straight-line basis over the life of
The directors of Twitch are disappointed in the value placed on the 15-year The surveyor has said that the fall in its value is due mainly to its unfavorable but in time the surveyor expects its value to increase. The directors are incorporating the revalued amount of the 25-year leasehold into the fina statements, but wish to retain the historical cost basis for the 15-year lea
The revaluation surplus as of December 31, 2020 should be?
The carrying amount of the leasehold factories as of December 31, 2020 should be?
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