esidual value and will be depreciated using the straight  line method.   On March 1, 2020 the equipment was reclassified to held for sale under IFRS 5 provisions. On  the same date the equipment

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Dvalin Corp had the following transactions related to some of its properties. 

  • On January 1, 2020, Dvalin acquired equipment for cash at a cost of P6,000,000. The  equipment has a life of 6 years with no residual value and will be depreciated using the straight  line method.  
  • On March 1, 2020 the equipment was reclassified to held for sale under IFRS 5 provisions. On  the same date the equipment had a fair value less cost to sell of P5,500,000. 
  • On December 31, 2020 been sold for P3,200,000. 

Requirement: Provide the journal entries for the foregoing transactions. 

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