Abba Company accounted for noncurrent assets using the revaluation model.On July 1, 2021, the entity classified an equipment as held for sale. At that date,the carrying amount was P1,900,000 and the balance of the revaluation surpluswas P200,000. On July 1, the fair value was estimated at P1,800,000 and thecost of disposal at P100,000. On December 31, 2021, the fair value wasestimated at P2,000,000 and the cost of disposal is P200,000. At what amountshould the equipment be measured on December 31, 2021?
Abba Company accounted for noncurrent assets using the revaluation model.On July 1, 2021, the entity classified an equipment as held for sale. At that date,the carrying amount was P1,900,000 and the balance of the revaluation surpluswas P200,000. On July 1, the fair value was estimated at P1,800,000 and thecost of disposal at P100,000. On December 31, 2021, the fair value wasestimated at P2,000,000 and the cost of disposal is P200,000. At what amountshould the equipment be measured on December 31, 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Abba Company accounted for noncurrent assets using the revaluation model.On July 1, 2021, the entity classified an equipment as held for sale. At that date,the carrying amount was P1,900,000 and the balance of the revaluation surpluswas P200,000. On July 1, the fair value was estimated at P1,800,000 and thecost of disposal at P100,000. On December 31, 2021, the fair value wasestimated at P2,000,000 and the cost of disposal is P200,000. At what amountshould the equipment be measured on December 31, 2021?
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