Arlene Company accounted for noncurrent assets using the cost model. On October 30, 2017, the entity classified a nonc
Arlene Company accounted for noncurrent assets using the cost model. On October 30, 2017, the entity classified a nonc
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Arlene Company accounted for noncurrent assets using the cost model.
On October 30, 2017, the entity classified a noncurrent asset as held for sale.
At that date, the carrying amount was P1,500,000, the fair value was
estimated at P1,100,000 and the cost of disposal at P150,000.
On November 20, 2017, the asset was sold for net proceeds of
P800.000.
1. What amount should be included as loss on disposal in the statement of comprehensive income for the year ended December 31, 2017?
2. Prepare necessary journal entries
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