On July 1, 2022, WAVY Company has a building with a cost of P4,000,000 and accumulated depreciation of P1,600,000. On the same date, WAVY Company commits to a plan to sell the building by March 1, 2023. The building has a fair value of P2,000,0o0 and it is estimated that the selling cost associated with the disposal of the building will be P150,000. As of July 1, 2022, the building has a remaining life of 15 years.
On July 1, 2022, WAVY Company has a building with a cost of P4,000,000 and accumulated depreciation of P1,600,000. On the same date, WAVY Company commits to a plan to sell the building by March 1, 2023. The building has a fair value of P2,000,0o0 and it is estimated that the selling cost associated with the disposal of the building will be P150,000. As of July 1, 2022, the building has a remaining life of 15 years.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 11MCQ
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What is the amount to be reported as the carrying value of the building-held for sale as of December 31, 2022?
![On July 1, 2022, WAVY Company has a building with a cost of P4,000,000 and accumulated depreciation of
P1,600,000. On the same date, WAVY Company commits to a plan to sell the building by March 1, 2023. The
building has a fair value of P2,000,000 and it is estimated that the selling cost associated with the disposal of the
building will be P150,000. As of July 1, 2022, the building has a remaining life of 15 years.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F39626923-0ac1-41fa-a618-c8f49742141f%2F414ff909-dd42-4d35-b19f-2de6a5a1be42%2Fw36ez3u_processed.png&w=3840&q=75)
Transcribed Image Text:On July 1, 2022, WAVY Company has a building with a cost of P4,000,000 and accumulated depreciation of
P1,600,000. On the same date, WAVY Company commits to a plan to sell the building by March 1, 2023. The
building has a fair value of P2,000,000 and it is estimated that the selling cost associated with the disposal of the
building will be P150,000. As of July 1, 2022, the building has a remaining life of 15 years.
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