11. An equipment was purchased by BB Company on January 1, 2019 for P5,000,000 with estimated useful life of 10 years and no salvage value. On January 1, 2021, the entity classified the asset as held for sale in accordance with PFRS 5. As of this date the fair value of the asset is P3,300,000 and cost to sell is P100,000. As of December 31, 2021, the entity believes that the criteria for classification as held for sale can no longer be met. The fair value of the equipment is P3,800,000 and cost to sell is P200,000 as of December 31, 2021 while the value in use amounted to 3,200,000. At what amount should the asset be reported in its 2021 statement of financial position?
11. An equipment was purchased by BB Company on January 1, 2019 for P5,000,000 with estimated useful life of 10 years and no salvage value. On January 1, 2021, the entity classified the asset as held for sale in accordance with PFRS 5. As of this date the fair value of the asset is P3,300,000 and cost to sell is P100,000. As of December 31, 2021, the entity believes that the criteria for classification as held for sale can no longer be met. The fair value of the equipment is P3,800,000 and cost to sell is P200,000 as of December 31, 2021 while the value in use amounted to 3,200,000. At what amount should the asset be reported in its 2021 statement of financial position?
Chapter15: Property Transactions: Nontaxable Exchanges
Section: Chapter Questions
Problem 46P
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11.
An equipment was purchased by BB Company on January 1, 2019 for P5,000,000 with estimated useful life of 10 years and no salvage value. On January 1, 2021, the entity classified the asset as held for sale in accordance with PFRS 5. As of this date the fair value of the asset is P3,300,000 and cost to sell is P100,000. As of December 31, 2021, the entity believes that the criteria for classification as held for sale can no longer be met. The fair value of the equipment is P3,800,000 and cost to sell is P200,000 as of December 31, 2021 while the value in use amounted to 3,200,000.
At what amount should the asset be reported in its 2021 statement of financial position?
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