On December 31, 2020, MECH COMPAY’S only building has a carrying amount of P1,350,000. The net recoverable amount of the building at that date was P950,000. The building still has a remaining life of 5 years. The net recoverable amount of the building on December 31, 2021 and December 31, 2022 were P820,000 and P855,000 respectively Impairment loss included in the profit or loss section of the 2020 comprehensive income statement Gain on impairment reversals included in the profit or loss section of the 2021 comprehensive income statement Gain on impairment reversals included in the profit or loss section of the 2022 comprehensive income statement
On December 31, 2020, MECH COMPAY’S only building has a carrying amount of P1,350,000. The net recoverable amount of the building at that date was P950,000. The building still has a remaining life of 5 years. The net recoverable amount of the building on December 31, 2021 and December 31, 2022 were P820,000 and P855,000 respectively Impairment loss included in the profit or loss section of the 2020 comprehensive income statement Gain on impairment reversals included in the profit or loss section of the 2021 comprehensive income statement Gain on impairment reversals included in the profit or loss section of the 2022 comprehensive income statement
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...
Related questions
Question
- On December 31, 2020, MECH COMPAY’S only building has a carrying amount of P1,350,000. The net recoverable amount of the building at that date was P950,000. The building still has a remaining life of 5 years.
The net recoverable amount of the building on December 31, 2021 and December 31, 2022 were P820,000 and P855,000 respectively
- Impairment loss included in the profit or loss section of the 2020 comprehensive income statement
- Gain on impairment reversals included in the profit or loss section of the 2021 comprehensive income statement
- Gain on impairment reversals included in the profit or loss section of the 2022 comprehensive income statement
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning