LaPerm Company reported the following account balances on December 31, 2021
Land 15,000,000
Building 120,000,000
Accumulated depreciation 40,000,000
Property, plant, and equipment have been carried using the cost model since acquisition. The land was
acquired 15 years ago while the building’s construction was completed on January 1, 2012. The straight
line method for depreciation is used. The total life of the building is 30 years. On January 1, 2022, the entity
adopted the revaluation model. It was determined that the land’s current fair value is P25,000,000 and the
building’s current replacement cost is P150,000,000 on such date. What is the revaluation surplus on
December 31, 2022?
A
.
29,000,000 B. 30,000,000 C. 28,500,000 D. 19,500,000