On January 1, 2019, ABC Company purchased land at a cost of P 6M. the entity used the revaluation model for this asset. The fair value of the land was P 7M on December 31, 2019 and P 8.5M on December 31, 2020. On July 1, 2021, the entity decided to sell the land and therefore classified the asset as held for sale. The fair value of the land on this date is P 9.6M. The estimated cost of disposal is P 300,000.On December 31, 2021, the land was sold for P 8M. How much is the net impact of the land held for sale on 2021 income statement? (indicate negative sign if loss)

On January 1, 2019, ABC Company purchased land at a cost of P 6M. the entity used the revaluation model for this asset. The fair value of the land was P 7M on December 31, 2019 and P 8.5M on December 31, 2020. On July 1, 2021, the entity decided to sell the land and therefore classified the asset as held for sale. The fair value of the land on this date is P 9.6M. The estimated cost of disposal is P 300,000.On December 31, 2021, the land was sold for P 8M. How much is the net impact of the land held for sale on 2021 income statement? (indicate negative sign if loss)

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter17: Property Transactions: §1231 And Recapture Provisions

Section: Chapter Questions

Problem 9DQ

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