On January 1, 2020, Diluc acquired land for a cost of P3,000,000 and a building costing P6,000,000. The building has a useful life of 6 years with no residual value. The land and building were properly included under the caption of “Property Plant and Equipment”. On July 1, 2020 due to management decisions, the land and building qualified as “Held for sale” under IFRS 5 provisions on the same date the land had a fair value less cost to sell of P2,500,000, and the building P5,300,000. The fair value less cost to sell of the land and building remained the same until December 31, 2020. Requirements: 1. What amount of assets must be presented in the December 31, 2020 financial statements from the foregoing events? 2. What amount of depreciation expense was recorded in 2020?
On January 1, 2020, Diluc acquired land for a cost of P3,000,000 and a building costing P6,000,000.
The building has a useful life of 6 years with no residual value. The land and building were properly
included under the caption of “Property Plant and Equipment”.
On July 1, 2020 due to management decisions, the land and building qualified as “Held for sale” under
IFRS 5 provisions on the same date the land had a fair value less cost to sell of P2,500,000, and the
building P5,300,000. The fair value less cost to sell of the land and building remained the same until
December 31, 2020.
Requirements:
1. What amount of assets must be presented in the December 31, 2020 financial statements from
the foregoing events?
2. What amount of
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