ARLENE Company accounts for noncurrent assets using the cost model. On October 30,2010, Arlene classified a noncurrent asset as held for sale. At that date, the asset’s carrying amount was P1,500,000, its fair value was estimated at P1,100,000 and the cost to sell at P150,000. On November 20, 2010, the asset was sold for the net proceeds of P800,000. What amount should be included as loss on disposalin Arlene’s statement of comprehensive income for the year ended December 31, 2010? - (The answer is 150,000) PLEASE PREPARE THE JOURNAL ENTRIES.
ARLENE Company accounts for noncurrent assets using the cost model. On October 30,2010, Arlene classified a noncurrent asset as held for sale. At that date, the asset’s carrying amount was P1,500,000, its fair value was estimated at P1,100,000 and the cost to sell at P150,000. On November 20, 2010, the asset was sold for the net proceeds of P800,000. What amount should be included as loss on disposalin Arlene’s statement of comprehensive income for the year ended December 31, 2010? - (The answer is 150,000) PLEASE PREPARE THE JOURNAL ENTRIES.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ARLENE Company accounts for noncurrent assets using the cost model. On October 30,2010, Arlene
classified a noncurrent asset as held for sale. At that date, the asset’s carrying amount was P1,500,000,
its fair value was estimated at P1,100,000 and the cost to sell at P150,000. On November 20, 2010, the
asset was sold for the net proceeds of P800,000. What amount should be included as loss on disposalin
Arlene’s statement of comprehensive income for the year ended December 31, 2010? - (The answer is 150,000)
PLEASE PREPARE THE JOURNAL ENTRIES.
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