BBM Co. is a commercial leasing and finance company. As of year-end, BBM holds equipment that is available either for sale or lease. BBM is not yet decided whether to sell or to lease the equipment. The equipment has a carrying amount of P1,000,000, fair value of P1,200,000 and costs to sell of P50,000. How should BBM Co. classify the equipment? O Held for sale, P1,000,000 O Held for sale, P1.150,000 O Investment property, P1.250,000 O Inventory, P1.000.000
BBM Co. is a commercial leasing and finance company. As of year-end, BBM holds equipment that is available either for sale or lease. BBM is not yet decided whether to sell or to lease the equipment. The equipment has a carrying amount of P1,000,000, fair value of P1,200,000 and costs to sell of P50,000. How should BBM Co. classify the equipment? O Held for sale, P1,000,000 O Held for sale, P1.150,000 O Investment property, P1.250,000 O Inventory, P1.000.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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BBM co
Transcribed Image Text:BBM Co. is a commercial leasing and finance company. As of
year-end,
BBM holds equipment that is available either for sale or lease.
BBM is not yet decided whether to sell or to lease the
equipment. The equipment has a carrying amount of P1,000,000,
fair value of P1,200,000 and costs to sell of P50,000. How
should BBM Co. classify the equipment?
O Held for sale, P1,000,000
O Held for sale, P1.150,000
O Investment property, P1.250,000
O Inventory, P1.000.000
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