Answered: 1.What is the carrying amount of the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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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