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estimated disposal cost of P50,000. On January 10, 2022, the asse cost to sell amounting to P35,000. How much loss on sale is to be recognized on January 10, 2022?

estimated disposal cost of P50,000. On January 10, 2022, the asse cost to sell amounting to P35,000. How much loss on sale is to be recognized on January 10, 2022?

FINANCIAL ACCOUNTING
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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On January 2, 2021, Tall company classified non current asset with a carrying amount of P2,400,000 as held for sale. On this date, the asset is expected to be sold for P2,300,000 with expected cost to sell of P100,000. By December 31, 2021, the asset's fair value is P2,400,000 with estimated disposal cost of P50,000. On January 10, 2022, the asset was sold for P2,200,000 with cost to sell amounting to P35,000. How much loss on sale is to be recognized on January 10, 2022?
Transcribed Image Text:On January 2, 2021, Tall company classified non current asset with a carrying amount of P2,400,000 as held for sale. On this date, the asset is expected to be sold for P2,300,000 with expected cost to sell of P100,000. By December 31, 2021, the asset's fair value is P2,400,000 with estimated disposal cost of P50,000. On January 10, 2022, the asset was sold for P2,200,000 with cost to sell amounting to P35,000. How much loss on sale is to be recognized on January 10, 2022?
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