17. On December 31, 20x4, the machinery remains unsold. The fair value of the machinery on December 31, 20x4 is P1,000,000 while costs to sell are estimated at P50,000. The entity did not further decrease the sale price. Which of the following shall be recognized by the entity in its 20x4 financial statements? a. Property, plant and equipment for P400,000 b. Property, plant and equipment for P1,000,000. c. Noncurrent asset held for sale for P950,000. d. Noncurrent asset held for sale for P1,000,000. 18. Requirement: Provide the journal entry on December 31, 20x4.
17. On December 31, 20x4, the machinery remains unsold. The fair value of the machinery on December 31, 20x4 is P1,000,000 while costs to sell are estimated at P50,000. The entity did not further decrease the sale price. Which of the following shall be recognized by the entity in its 20x4 financial statements? a. Property, plant and equipment for P400,000 b. Property, plant and equipment for P1,000,000. c. Noncurrent asset held for sale for P950,000. d. Noncurrent asset held for sale for P1,000,000. 18. Requirement: Provide the journal entry on December 31, 20x4.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Topic: Non-Current Assets Held for Sale and Discontinued Operations
11. Which of the following shall be recognized by the entity in its 20x4 financial statements?
a. Property, plant and equipment for P400,000
b. Property, plant and equipment for P1,000,000
c. Noncurrent asset held for sale for P950,000
d. Noncurrent asset held for sale for P1,000,000
18. Requirement: Provide the
Transcribed Image Text:17. On December 31, 20x4, the machinery remains unsold. The
fair value of the machinery on December 31, 20x4 is P1,000,000
while costs to sell are estimated at P50,000. The entity did not
further decrease the sale price. Which of the following shall be
recognized by the entity in its 20x4 financial statements?
a. Property, plant and equipment for P400,000
b. Property, plant and equipment for P1,000,000.
Noncurrent asset held for sale for P950,000.
d. Noncurrent asset held for sale for P1,000,000.
С.
18. Requirement: Provide the journal entry on December 31, 20x4.
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