On January 1, 2011, ECLAR Co. acquired a building for ₱4,000,000. The asset is depreciated using the straight line method over an estimated useful life of 10 years. On January 1, 2016, the building was estimated to have a recoverable amount of ₱1,600,000. Consequently, impairment loss was recognized on that date. There was no change in the estimated useful life. On January 1, 2019, the building was estimated to have a new recoverable amount of ₱2,400,000 and a remaining useful life of 3 years. The building is measured under the revaluation model. How much of the impairment reversal is recognized in profit or loss?
On January 1, 2011, ECLAR Co. acquired a building for ₱4,000,000. The asset is depreciated using the straight line method over an estimated useful life of 10 years. On January 1, 2016, the building was estimated to have a recoverable amount of ₱1,600,000. Consequently, impairment loss was recognized on that date. There was no change in the estimated useful life. On January 1, 2019, the building was estimated to have a new recoverable amount of ₱2,400,000 and a remaining useful life of 3 years. The building is measured under the revaluation model. How much of the impairment reversal is recognized in profit or loss?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On January 1, 2011, ECLAR Co. acquired a building for ₱4,000,000. The asset is
On January 1, 2016, the building was estimated to have a recoverable amount of ₱1,600,000. Consequently, impairment loss was recognized on that date. There was no change in the estimated useful life.
On January 1, 2019, the building was estimated to have a new recoverable amount of ₱2,400,000 and a remaining useful life of 3 years.
The building is measured under the revaluation model. How much of the impairment reversal is recognized in profit or loss?
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