PUP CAF 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 a cost model to account for its property, plant, and equipment. What amount of gain on reversal of impairment should be reported in the income statement for 2021?

PUP CAF 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 a cost model to account for its property, plant, and equipment. What amount of gain on reversal of impairment should be reported in the income statement for 2021?

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 66P

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