ABC has an asset that was classified as held for sale at 31 March 2019. The asset had a carryingamount of P900 and a fair value of P800. The cost of disposal was estimated to be P50.According to PFRS 5 Non-current Assets Held for Sale and Discontinued Operations, whichvalue should be used for the asset as at 31 March 2019? * P750 P800 P850 P900

ABC has an asset that was classified as held for sale at 31 March 2019. The asset had a carryingamount of P900 and a fair value of P800. The cost of disposal was estimated to be P50.According to PFRS 5 Non-current Assets Held for Sale and Discontinued Operations, whichvalue should be used for the asset as at 31 March 2019? * P750 P800 P850 P900

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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MC19 The Diane Company has a single investment property acquired on July 1, 2019 for P11,400,000. The property has an estimated useful life of 40 years and an estimated residual value of P600,000. The company's accounting period ends on December 31 and uses the straight-line method of depreciation, computed to the nearest month. The fair values of the property at the end of each year follows: 2019 - P11,700,000 2020 - P11,960,000 2021 - P12,000,000 2022 - P11,700,000 Using the cost model, what is the amount reported in the 2022 profit or loss? P135,000 P270,000 P300,000 P(300,000) a. b. с. d. MC20 Use data of MC19. Under the fair value model, what is the amount reported in the 2022 profit or loss? P135,000 P270,000 P300,000 P(300,000) a. b. с. d.
Q6. Land was acquired for $200 000 on 1 July 2017. On 30 June 2018 it has a fair value of $150 000. On 30 June 2020, due to increased population, the land is considered to have a fair value of $270 000. Write the journal entries needed.
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d. P225,000 MC48 On July 16, 2019, Rudy Project Company purchased all the ase cash. Iris Company's total identifiable asset values were: R value P115,000,000. Iris P100,000,000; Fair market value Company's total liabilities were P52,500,000. What is the amount of goodwill that Rudy Project Company should record on July 16, 2019? a. PO b. P7,500,000 P15,000,000 P22,500,000 C. d.
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If the actual carrying amount of an asset is R1 500 000 and the historical carrying amount is R900 000, and the fair value is lower than the historical carrying, what is the amount that will be taken to OCI?
TS Co. uses the revaluation model for its buildings. The last revaluation of the buildings to their fair value took place on December 31, 2018. TS provided you with the following information taken from its books on December 31, 2020: Building: 1200000 Annual depreciation: 100000 Residual Value: 120000 Remaining useful life: 11 on Dec 31, 2018 Accum OCI: 25000 Depreciation has been recorded to date, On December 31, 2020, the building fair value is $960,000. The straight-line method of depreciation is used for buildings. (a) Prepare all the journal entries related to the revaluation of the building in 2020. (b) Calculate the depreciation expense to be recorded on December 31, 2021.
3. What amount should be recognized as gain on reclassification of the equipment in 2023? * Problem A. Clara Company purchased equipment for P5,000,000 on January 1, 2021 with a useful life of 10 years and no residual value. On December 31, 2022, the entity classified the asset as held for sale. The fair value of the equipment on December 31, 2022 is P3,300,000 and the cost of disposal is P100,000. On December 31, 2023, the fair value of the equipment is P3,800,000 and the cost of disposal is P200,000. On December 31, 2023, the entity believed that the criteria for classification as held for sale can no longer be met. Accordingly, the entity decided not to sell the assets but to continue to use it. Your answer
Q4 Dhofar LLC acquired an asset on 1st January 2019 for OMR 500,000 and the rate of depreciation is 10%p.a. Under Straight line method. Replacement cost of the asset on 31st December 2019 was OMR 700,000 and on 31st December 2020 was OMR 1,000,000. You are required to calculate for 2020 assuming switch year is made in the current year, the value of additional depreciation. a. OMR 15,000 b. None of these are correct c. OMR 50,000 d. OMR 35,000
The trial balance of TAC Company at December 31, 2019 showed a balance of $9,000 for its equipment and of $750 for its accumulated depreciation as the equipment was purchased on September 1, 2019 with a 4 years useful life. The adjusted balance of the equipment's accumulated depreciation account in the trial balance of the year 2020 will be: * O $750 O $2,250 O $3,000 O None of the options