Hindi Kho Kaya Corporation is using the cost model for noncurrent assets. On November 1, 2020, the entity classified a noncurrent asset as held for sale. At that date, the carrying amount was P3,000,000, the fair value was estimated at P2,200,000, and the cost of disposal at P300,000. On November 22, 2020, the asset was old for net proceeds of P1,600,000.
Hindi Kho Kaya Corporation is using the cost model for noncurrent assets. On November 1, 2020, the entity classified a noncurrent asset as held for sale. At that date, the carrying amount was P3,000,000, the fair value was estimated at P2,200,000, and the cost of disposal at P300,000. On November 22, 2020, the asset was old for net proceeds of P1,600,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hindi Kho Kaya Corporation is using the cost model for noncurrent assets. On November 1, 2020, the entity classified a noncurrent asset as held for sale. At that date, the carrying amount was P3,000,000, the fair value was estimated at P2,200,000, and the cost of disposal at P300,000. On November 22, 2020, the asset was old for net proceeds of P1,600,000.
- What amount should be reported as loss on disposal for the year ended December 31, 2020?
- ₱300,000 ₱1,400,000
- ₱500,000 ₱1,100,000
- What is the impairment loss for 2020?
- ₱800,000 ₱1,400,000
₱1,100,000 d. ₱1,700,000
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