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On July 1, 2021, RJ Components had an equipment with cost of P5,000,000 and accumulated depreciation of P3,000,000. On that date, the entity classified the equipment as held for sale. On the same date, the equipment had an estimated selling price of P1,300,000, estimated selling cost of P100,000 and remaining life of of 4 years. On December 31, 2021, the estimated selling price of the equipment had increased to P1,500,000 with an estimated selling cost of P50,000. What amount should be reported as gain on reversal of impairment in 2021?  A. 800000 B. 200000 C. 250000 D. 300000

On July 1, 2021, RJ Components had an equipment with cost of P5,000,000 and accumulated depreciation of P3,000,000. On that date, the entity classified the equipment as held for sale. On the same date, the equipment had an estimated selling price of P1,300,000, estimated selling cost of P100,000 and remaining life of of 4 years. On December 31, 2021, the estimated selling price of the equipment had increased to P1,500,000 with an estimated selling cost of P50,000. What amount should be reported as gain on reversal of impairment in 2021?  A. 800000 B. 200000 C. 250000 D. 300000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On July 1, 2021, RJ Components had an equipment with cost of P5,000,000 and accumulated depreciation of P3,000,000. On that date, the entity classified the equipment as held for sale. On the same date, the equipment had an estimated selling price of P1,300,000, estimated selling cost of P100,000 and remaining life of of 4 years. On December 31, 2021, the estimated selling price of the equipment had increased to P1,500,000 with an estimated selling cost of P50,000. What amount should be reported as gain on reversal of impairment in 2021? 

A. 800000
B. 200000
C. 250000
D. 300000

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