Problem
1975 Company acquired equipment on January 1, 2014, for P60,000. 1975 elects to value the whole class of equipment using revaluation accounting. The equipment is being depreciated on a straight- line basis over its 6-year useful life. There is no residual value at the end of the 6-year period. The appraised value of the equipment approximates the carrying amount on December 31, 2014 and 2016. On December 31, 2015, the fair value of the equipment is determined to be P35,000. Determine the amount of depreciation expense that 1975 Co. will record on the equipment in 2016.