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.

Q: Calculate depreciation expense on the building, machinery, and equipment for 2020. Show your…

A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…

Q: years. It is the company's policy to transfer portion of the revaluation surplus to retained…

A: The depreciation expense per year after revaluation is same as before revaluation.

Q: Avocado Inc. acquire a machinery at a cost of P10,000,000 on January 1, 2021 to be used in the…

A: The question is related to the Depreciation Accounting. The details are given regarding the same.

Q: UNO COMPANY purchased equipment for P5,000,000 on January 1, 2013 with a useful life of ten years…

A: Impairment of assets means reducing the book value  of assets when carrying amount is more than…

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A: At beginning of year 2019, Itlog company acquired property at cost = $2000000 Useful life of…

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A: IFRS 15 provides that At Commencement date, Lessee measures the ROU asset at proportion of the…

Q: On January 1, 2021, Globe Company sold a piece of machinery to Troll Company for P1,900,000. Because…

A: The question is related to Lease Accounting. The leasee (Global) will record the asset at lower of…

Q: How much is the interest expense for 2021 on the lease liability relating to the right retained in…

A: Sale and leaseback allow the seller of an asset to get back the assets in the form of a lease. Thus,…

Q: On January 1, 2022, Villanueva Company classified noncurrent assets as held for sale that had a…

A: Introduction: A noncurrent asset is one that is not projected to be utilized within one year. If a…

Q: UNDOS COMPANY purchased equipment for P5,000,000 on January 1, 2013 with a useful life of ten years…

A: When an assets cease to be used in regular use and held for sale , then it should be carry at fair…

Q: On January 1, 2022, Villanueva Company classified noncurrent assets as held for sale that had a…

A: Asset  classified as "held for use" means that the disposal of the asset will not take place and if…

Q: What is the amount of revaluation surplus reported in equity on December 31, 2022?

A: Answer: To calculate the amount of revaluation surplus reported in equity on December 31, 2022, we…

Q: P22,000,000 and residual value of P4,000,000 and revised remaining life of 10 years. It is the…

A: As per the policy, the revaluation surplus is required to be transfer to retained earnings. The…

Q: suns incorporated classified their buildings as held for sale on june 1, 2020. on this date, the…

A: Non-current assets are assets are assets other than current assets, i.e. assets usually having a…

Q: Hindi Kho Kaya Corporation is using the cost model for noncurrent assets. On November 1, 2020, the…

A: As per IFRS 5, Non current assets held for sale and discontinued operations,  Specifies that an…

Q: Clara Company purchased equipment for P5,000,000 on January 1, 2021 with a useful lite of 10 years…

A: VALUE OF PROPERTY IMMEDIATELY BEFORE THE CLASSIFICATION AS HELD FOR SALE AS ON 31ST DEC, 2022…

Q: Lincon Company owned a building on January 01, 2019, with historical cost of P52,000,000. The…

A: A revaluation excess is a type of equity account that records any gains in the value of capital…

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A: Commercial organizations used journal entries to record their financial transactions in their…

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Q: Michael Company acquired a depreciable asset at the beginning of 2020 at a cost of $30 million. On…

A: Lets understand the basics. As per IAS 36 "Impairment of assets", when carrying value of asset is…

Q: During 2021, Cullumber Company purchased the net assets of Riverbed Corporation for $2206600. On the…

A: Current assets are assets which are in the form of cash or can be converted into cash within a year.…

Q: On December 31, 2020, the entity classified as held for sale a machine with carrying amount of…

A: This question deals with the concept of impairment loss. As per IFRS 5, When carrying value of asset…

Q: Ventura Corporation purchased machinery on January 1, 2019 for ₱840,000. The company used the…

A: It has to be treated prospective. There is no cumulative effect. Therefore option d ₱0 is correct

Q: The journal entry to record the machinery as held for sale would require a credit to Machinery of…

A: Machinery is a type of asset which falls normally under the category of the fixed assets which is…

Q: ABC Company accounted for noncurrent assets using the cost model. On December 31, 2021, the entity…

A: Non current assets are the assets which held by the form for a longer term investment horizon and…

Q: On April 30, 2019, Min

A:

Q: Gia Corporation purchased machinery on January 1, 2019 for ₱840,000. The company used the…

A: 1. It has to be handled prospectively, therefore there is no cumulative effect on tax. Answer is…

Q: Red Company acquired a building on January 1, 2021 for P20,000,000.  At that date, the building had…

A: Investment property: It implies to a property that is purchased or bought by the investor for the…

Q: Hardflex Inc. bought a building for production of XYZ product on June 30, 2017 costing P15,000,000…

A: First, the carrying value of the asset as on 31st December 2018 needs to be determined. Book value…

Q: 1) On January 1, 2020, Harbor Company purchased land and building at a single cost of P20,000,000.…

A: Fixed assets are those assets which are being held by business for longer period of time. All costs…

Q: On January 1, 2022, Villanueva Company classified noncurrent assets as held for sale that had a…

A: As per provisons of PFRS on the assets held for sale, when the asset fulfils the conditions for held…

Q: On December 31, 2021, LJK Co. classified its building with a historical cost of P1,700,000 and…

A: Impairment Loss on Held for sale Non current Assets According to PFRS 5 there are some rules and…

Q: On January 1, 2023, Blossom Ltd. acquires a building at a cost of $200,000. The building is expected…

A: The revaluation is the accounting process under which the business entity determines the market…

Q: On January 2, 2021, Tall company classified non current asset with a carrying amount of P2,400,000…

A: In case of non-current assets, classified as held for sale the value of assets would be recorded as…