1. Coral Company accounts for noncurrent assets using the cost model. On July 31, 2011, Coral classified a noncurrent asset as held for sale. At that date, the asset's carrying amount was P1,450,000, its fair value was estimated at P2,150,000 and the cost to sell at P150,000. The asset was sold on January 31, 2012 for P2,120,000. At what amount should the asset be measured in Coral's statement of financial position on December 31, 2011? a. 2,000,000 Ob. 2,150,000 O c. 2,120,000 O d. 1,450,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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1. Coral Company accounts for noncurrent
assets using the cost model. On July 31, 2011,
Coral classified a noncurrent asset as held
for sale. At that date, the asset's carrying
amount was P1,450,000, its fair value was
estimated at P2,150,000 and the cost to sell
at P150,000. The asset was sold on January
31, 2012 for P2,120,000. At what amount
should the asset be measured in Coral's
statement of financial position on December
31, 2011?
O a. 2,000,000
O b. 2,150,000
O c. 2,120,000
O d. 1,450,000
Transcribed Image Text:1. Coral Company accounts for noncurrent assets using the cost model. On July 31, 2011, Coral classified a noncurrent asset as held for sale. At that date, the asset's carrying amount was P1,450,000, its fair value was estimated at P2,150,000 and the cost to sell at P150,000. The asset was sold on January 31, 2012 for P2,120,000. At what amount should the asset be measured in Coral's statement of financial position on December 31, 2011? O a. 2,000,000 O b. 2,150,000 O c. 2,120,000 O d. 1,450,000
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