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.
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.
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.
What amount should be reported as impairment loss for 2017?
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