ABC Company accounted for noncurrent assets using the cost model. On December 31, 2021, the entity classified an equipment as held for sale. At that date, the carrying amount of the equipment was P1,600,000, the fair value was estimated at P1,300,000 and the cost of disposal at P200,000. On January 10, 2022, the equipment was sold for net proceeds of P1,200,000. Impairment loss for the year 2021 a. 200,000 b 500,000 c. 300,000 d. 100,000

ABC Company accounted for noncurrent assets using the cost model. On December 31, 2021, the entity classified an equipment as held for sale. At that date, the carrying amount of the equipment was P1,600,000, the fair value was estimated at P1,300,000 and the cost of disposal at P200,000. On January 10, 2022, the equipment was sold for net proceeds of P1,200,000. Impairment loss for the year 2021 a. 200,000 b 500,000 c. 300,000 d. 100,000

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

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 10RE: Assume the same information as in RE11-3, except that Albany Corporation purchased the asset on...

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Assume the same information as in RE11-3, except that Albany Corporation purchased the asset on April 1, Year 1. Calculate the depreciation for Year 1 and Year 2 using the double-declining-balance method. Round to the nearest dollar.
ABC Company accounted for noncurrent assets using the cost model. On December 31, 2021, the entity classified an equipment as held for sale. At that date, the carrying amount of the equipment was P1,600,000, the fair value was estimated at P1,300,000 and the cost of disposal at P200,000. On January 10, 2022, the equipment was sold for net proceeds of P1,200,000. Gain on disposal for the year 2022 (100,000) 329,000 100,000 400,000
An entity accounted for noncurrent assets using the cost model. On July 1, 2019, the entity classified an equipment as held for sale. At the date, the carrying amount was P5,000,000, the fair value was estimated at P3,500,000 and the cost of disposal at P100,000. On December 31, 2019, the equipment was sold for net proceeds of P2,500,000. What amount should be reported as an impairment loss for 2019? a. 1,600,000 b. 2,500,000 c. 1,500,000 d. 900,000 2. What amount should be reported as loss on disposal for 2019? a. 1,500,000 b. 2,500,000 c. 1,600,000 d. 900,000
The Cheer Company accounts for noncurrent assets using the cost model.On July 20, 2020, Cheer classified a noncurrent asset as held for sale in accordance with IFRS 5. At that date, the asset’s carrying amount was P24,500, its fair value was estimated at P31,500 and the costs to sell at P3,150. The asset was sold on October 18, 2020 for P31,200.How much is the impairment loss and at what amount should the asset be stated in Cheer Company's statement of financial position at September 30, 2020? A.P0 and P24.500 B. P3,850 and P24,500 C. P3,850 and P28,350 D. P0 and P28,350
On December 1, 2021, Violet Company committed to a plan to dispose of the assets of a business component. The disposal meets the requirements to be classified as discontinued operation. On that date, the entity estimated that the loss from the disposition of the assets would be P700,000 and the component’s operating income was P200,000. What amount of pretax loss should be reported for discontinued operation for 2021? A. 900,000 B. 700,000 C. 200,000 D. 500,000 E. None of them
On December 1, 2021, Violet Company committed to a plan to dispose of the assets of a business component. The disposal meets the requirements to be classified as discontinued operation. On that date, the entity estimated that the loss from the disposition of the assets would be P700,000 and the component’s operating income was P200,000. What amount of pretax loss should be reported for discontinued operation for 2021?
At what amount should the equipment be measured on December 31, 2021? * 2. Beauty Company accounted for noncurrent assets using the cost model. On November 1, 2021, the entity classified an equipment as held for sale. At that date, the carrying amount of the equipment was P4,000,000, the fair value was estimated at P4,200,000 and the cost of disposal at P300,000. On January 30, 2022, the equipment was sold for a net proceed of P3,600,000. A. 4,000,000 B. 4,200,000 C. 3,900,000 D. 3,600,000 E. None of them
The ABC Company accounts for non-current assets using the cost model. On July 20, 2021, ABC Company classified a non-current asset as held for sale in accordance with PFRS 5. At that date, the asset's carrying amount was P24,500, its fair value was estimated at P31,500 and the costs to sell at P3,150. The asset was sold on Oct 18, 2021 for P31,200. Q-27. 12.How much is the impairment loss and at what amount should the asset be stated in ABC Company's statement of financial position at September 30, 2021? 13.How much is the gain on sale to be reported in the September 30, 2021 statement of income?
On July 16, 2020, Agony Company classified a noncurrent asset as held for sale in accordance with IFRS 5 Noncurrent Assets Held for Sale and Discontinued Operations. At that date, the asset's carrying amount was P45,000, Its fair value was estimated at P33,000 and the costs to sell at P4,500.On October 20, 2020, the asset was sold for net proceeds of P27,600.If Agony Company accounts for noncurrent assets using the cost model what amount should be included as impairment loss and loss on disposal, respectively, in Agony Company's statement of comprehensive income for the year ended December 31,2020? A. P16,500 and P17,400 B. P0 and P17,400 C. P12,000 and P5,400 D. P16,500 and P900
MABC Company reported an impairment loss of P2,000,000 in 2020. This loss was related to an item of property, plant and equipment which was acquired on January 1, 2019 with cost of P10,000,000, useful life of 10 years and no residual value. On December 31, 2021, the entity determined that the fair value of the impaired asset had increased to P6,850,000. The straight line method is used in recording depreciation and uses cost model to account its property, plant and equipment. What amount of gain on reversal of impairment should be reported in the income statement for 2021?
Surreal Company accounted for non-current assets using the revaluation model. On October 1, 2021, the entity classified a land as held for sale. At that date, the carrying amount of the land was P5,000,000 and the balance in the revaluation surplus was P1,500,000. At same date, the fair value of the land was estimated at P5,500,000 and the cost of disposal at P100,000. On December 31,2021, the fair value less cost of disposal of the land did not change. The land was sold on January 31,2022 for P6,000,000. Required: 1. What is the adjusted carrying amount of the land on December 31,2021? a. 5,000,000 b. 5,500,000 c. 5,400,000 d. 3,500,000 2. What amount should be reported as impairment loss for 2021? a. 100,000 b. 400,000 c. 500,000 d. 0 3. What amount should be reported as revaluation surplus on December 31,2021? a. 1,500,000 b. 2,000,000 c. 1,000,000 d. 1,900,000 4. What amount should be reported as gain on disposal of land in 2022? a. 1,000,000 b. 2,600,000 c. 500,000 c. 600,000
Lala Company accounts for noncurrent assets using the cost model. On October 1, 2019, Lala classified a noncurrent asset held for sale. At that date, the asset’s carrying amount was P1,600,000, its fair value was estimated at P1,100,000 and the cost to sell at P100,000. On December 15, 2019, the asset was sold for net proceeds of P925,000. What amount should be included as an impairment loss in Lala’s statement of comprehensive income for the year ended December 31 ,2019?