On December 31, 2021, LJK Co. classified its building with a historical cost of P1,700,000 and accumulated depreciation of P1,020,000 as held for sale. All of the criteria under PFRS 5 are complied with. On that date, the land has a fair value of P525,000 and cost to sell of P35,000. 1. What is the carrying amount of the building at Dec. 31, 2021?
On December 31, 2021, LJK Co. classified its building with a historical cost of P1,700,000 and accumulated depreciation of P1,020,000 as held for sale. All of the criteria under PFRS 5 are complied with. On that date, the land has a fair value of P525,000 and cost to sell of P35,000. 1. What is the carrying amount of the building at Dec. 31, 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On December 31, 2021, LJK Co. classified its building with a historical cost of P1,700,000 and
1. What is the carrying amount of the building at Dec. 31, 2021?
2. What is the FV less Cost to Sell?
3. Assuming the building was not sold in 2022. However, the exception to the one year requirement was met. On December 31, 2022 the FV less cost to sell of the building is P470,000. What is the amount of impairment loss?
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