On April 30, 2019, Min
On April 30, 2019, Mindful Company classifies a property in Southern Tagalog as held for sale. The carrying
amount of the property on this date is P300,000,000 (cost of P400,000,000,
P60,000,000 and accumulated impairment loss of P40,000,000). The estimate of the fair value less cost to
sell on this date is P280,000,000.
On December 31, 2019, the estimate of the fair value less cost sell is P350,000,000. The sudden increase
in the fair value is attributed to the increase in demand for properties in Southern Tagalog, when the region
is earmarked as the Philippine Development Region by the government as the next phase for
growth
Question 1: What is the amount of impairment loss on April 30, 2019?
a. None c. P30,000,000
b. P20,000,000 d. P40,000,000
Question 2: What is the amount of impairment loss reversal on December 31, 2019?
a. None c. P50,000,000
b. P20,000,000 d. P60,000,00
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