Joy Corporation decided to dispose of an item of plant that is carried in its records at a cost of P450,000, with accumulated depreciation of P80,000.  Depreciation on the plant since it was originally acquired has been charged at P5,000 per month.  The plant will continue to be operated until it is sold, at which time the operations of the plant will be outsourced.  The company undertook all the necessary actions to be able to classify the asset as held for sale.  It is estimated that it could sell the plant for its fair value, P350,000, incurring P10,000 selling costs in the process.  The plant has been depreciated at an amount of P5,000 per month. On December 31, 2016, the plant had not been sold but, due

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Joy Corporation decided to dispose of an item of plant that is carried in its records at a cost of P450,000, with accumulated depreciation of P80,000.  Depreciation on the plant since it was originally acquired has been charged at P5,000 per month.  The plant will continue to be operated until it is sold, at which time the operations of the plant will be outsourced.  The company undertook all the necessary actions to be able to classify the asset as held for sale.  It is estimated that it could sell the plant for its fair value, P350,000, incurring P10,000 selling costs in the process.  The plant has been depreciated at an amount of P5,000 per month.
On December 31, 2016, the plant had not been sold but, due to a shortage of this type of plant, there had been an increase in the fair value to P360,000 while expected costs to sell remain at P10,000.
If Joy Corporation sold the plant on March 1, 2017 for a net proceeds of P351,000, what amount should be included as gain on disposal in the entity's statement of comprehensive income for the year ended 31 December 2017?
 
P19,000
P12,000
P11,000
P  1,000
 
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