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The revised annual depreciation after revaluation is computed as follows: Replacement cost: P21,000,000 Less: Accumulated depreciation (21M x 20/60): P7,000,000 Carrying amount: P14,000,000 Revised remaining useful life: 20 years Annual depreciation = Carrying amount / Remaining useful life = P14,000,000 / 20 years = P700,000 So the revised annual depreciation after revaluation is P700,000.

Author

Shynne Mabanta

Language

EN