DEF Company reports profit before tax of P500,000 in its 3rd quarter interim financial statements before consideration for the following: • Inventory with a carrying amount P10,000 has a net realizable value of P12,000. It is expected that the change in value will reverse in the 4th quarter. There have been no write-downs of inventory recognized in previous periods. • Loss on sale of a used equipment on August 2, 20x1 was $60,000. • An investment in FVPL measured at acquisition cost of P20,000 has a fair value of P38,000 as at the end of 3rd the quarter. However, the increase in fair value is expected to be only temporary. • DEF Company incurred P24,000 on unanticipated repairs on its factory equipment on March 16, 20x1. • No depreciation is recognized during the 3rd quarter. The annual straight-line depreciation of items of PPE

DEF Company reports profit before tax of P500,000 in its 3rd quarter interim financial statements before consideration for the following: • Inventory with a carrying amount P10,000 has a net realizable value of P12,000. It is expected that the change in value will reverse in the 4th quarter. There have been no write-downs of inventory recognized in previous periods. • Loss on sale of a used equipment on August 2, 20x1 was $60,000. • An investment in FVPL measured at acquisition cost of P20,000 has a fair value of P38,000 as at the end of 3rd the quarter. However, the increase in fair value is expected to be only temporary. • DEF Company incurred P24,000 on unanticipated repairs on its factory equipment on March 16, 20x1. • No depreciation is recognized during the 3rd quarter. The annual straight-line depreciation of items of PPE

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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