Merida company acquired an item of property, plant and equipment at a cost of P1,000,000 on January 2, 2017. The asset's estimated residual value is P100,000 and estimated useful life of 10 years. The company uses straight-line of depreciation. On January 1, 2022, the asset was reclassified as "held for sale". Its fair value on this date was P600,000 and the cost to sell was estimated at P20,000. At what amount should the asset "held for sale" be recorded at January 1, 2022

Merida company acquired an item of property, plant and equipment at a cost of P1,000,000 on January 2, 2017. The asset's estimated residual value is P100,000 and estimated useful life of 10 years. The company uses straight-line of depreciation. On January 1, 2022, the asset was reclassified as "held for sale". Its fair value on this date was P600,000 and the cost to sell was estimated at P20,000. At what amount should the asset "held for sale" be recorded at January 1, 2022

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 2RE: Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual...

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