Abba Company accounted for noncurrent assets using the revaluation model. On June 30, 2021, the entity classified a land as held for sale. At that date, the carrying amount was P2,900,000 and the balance of the revaluation surplus was P200,000. On June 30, 2021, the fair value was estimated at P3,300,000 and the cost of disposal at P200,000. On December 31, 2021, the fair value was estimated at P3,250,000 and the cost of disposal at P250,000. What total amount should be reported as impairment loss for 2021?
Abba Company accounted for noncurrent assets using the revaluation model. On June 30, 2021, the entity classified a land as held for sale. At that date, the carrying amount was P2,900,000 and the balance of the revaluation surplus was P200,000. On June 30, 2021, the fair value was estimated at P3,300,000 and the cost of disposal at P200,000. On December 31, 2021, the fair value was estimated at P3,250,000 and the cost of disposal at P250,000. What total amount should be reported as impairment loss for 2021?
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 37P
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Abba Company accounted for noncurrent assets using the revaluation model. On June 30, 2021, the entity classified a land as held for sale.
At that date, the carrying amount was P2,900,000 and the balance of the revaluation surplus was P200,000.
On June 30, 2021, the fair value was estimated at P3,300,000 and the cost of disposal at P200,000.
On December 31, 2021, the fair value was estimated at P3,250,000 and the cost of disposal at P250,000.
What total amount should be reported as impairment loss for 2021?
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