Beauty Company accounted for noncurrent assets using the cost model. On November 1, 2021, the entity classified an equipment as held for sale. At that date, the carrying amount of the equipment was P4,000,000, the fair value was estimated at P4,200,000 and the cost of disposal at P300,000. On January 30, 2022, the equipment was sold for a net proceed of P3,600,000.
Beauty Company accounted for noncurrent assets using the cost model. On November 1, 2021, the entity classified an equipment as held for sale. At that date, the carrying amount of the equipment was P4,000,000, the fair value was estimated at P4,200,000 and the cost of disposal at P300,000. On January 30, 2022, the equipment was sold for a net proceed of P3,600,000.
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 60P
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At what amount should the equipment be measured on December 31, 2021?
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