NATO Company accounted for noncurrent assets using the revaluation model. On July 1, 2021, the entity classified an equipment as held for sale. At that date, the carrying amount was P1,900,000 and the balance of the revaluation surplus was P200,000. On July 1, the fair value was estimated at P1,800,000 and the cost of disposal at P100,000. On December 31, 2021, the fair value was estimated at P2,000,000 and the cost of disposal is P200,000. At what amount should the equipment be measured on December 31, 2021?
NATO Company accounted for noncurrent assets using the revaluation model. On July 1, 2021, the entity classified an equipment as held for sale. At that date, the carrying amount was P1,900,000 and the balance of the revaluation surplus was P200,000. On July 1, the fair value was estimated at P1,800,000 and the cost of disposal at P100,000. On December 31, 2021, the fair value was estimated at P2,000,000 and the cost of disposal is P200,000. At what amount should the equipment be measured on December 31, 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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NATO Company accounted for noncurrent assets using the revaluation model.
On July 1, 2021, the entity classified an equipment as held for sale. At that date,
the carrying amount was P1,900,000 and the balance of the revaluation surplus
was P200,000. On July 1, the fair value was estimated at P1,800,000 and the
cost of disposal at P100,000. On December 31, 2021, the fair value was
estimated at P2,000,000 and the cost of disposal is P200,000. At what amount
should the equipment be measured on December 31, 2021?
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