On December 1, 2020, ABC Company declared property dividends in the form of pieces of equipment. On that date, the carrying value of the equipment to be distributed is P 850,000 and its fair value is P 800,000. On December 31, 2020, the fair value of the equipment has decreased to 750,000 and on the date of distribution which on January 15,2021, it has increased to P 875,000. What total amount was charged to Retained Earnings pertaining to the property dividends declared? How much is the gain or loss on asset disposal to be recognized on the date of distribution? if gain --> positive amount - Example : 1,000 loss --> (negative amount) (1,000)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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On December 1, 2020, ABC Company declared property dividends in the form of pieces of equipment. On that date, the carrying value of the equipment to be distributed is P 850,000 and its fair value is P 800,000. On December 31, 2020, the fair value of the equipment has decreased to 750,000 and on the date of distribution which on January 15,2021, it has increased to P 875,000.

What total amount was charged to Retained Earnings pertaining to the property dividends declared?

How much is the gain or loss on asset disposal to be recognized on the date of distribution?

if gain --> positive amount - Example : 1,000
loss --> (negative amount) (1,000)

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