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. What is the amount of impairment loss to be reported for 2021? * Your answer

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. What is the amount of impairment loss to be reported for 2021? * Your answer

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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