1.What is the carrying amount of the impaired asset on December 31, 2027? 2. What amount should be recognized as gain in reversal of impairment for 2027? 3. What amount should be recognized as revaluation surplus in 2027? 4. What amount should be recognized as impairment loss on 2025?
1.What is the carrying amount of the impaired asset on December 31, 2027? 2. What amount should be recognized as gain in reversal of impairment for 2027? 3. What amount should be recognized as revaluation surplus in 2027? 4. What amount should be recognized as impairment loss on 2025?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...
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On January 1, 2021, Gaston Corp. purchased a building for Php 20,000,000. The building has a useful life of Php 20 years and no residual value. On December 31, 2025, the entity tested the asset for impairment. The fair value on such date is Php 12,000,000. On December 31, 2027, Gaston Company decided to use the revaluation model. The fair value of the assets on such date has risen to Php 18,000,000. Answer the following based in the information above 1.What is the carrying amount of the impaired asset on December 31, 2027? 2. What amount should be recognized as gain in reversal of impairment for 2027? 3. What amount should be recognized as revaluation surplus in 2027? 4. What amount should be recognized as impairment loss on 2025?
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