On October 31, 2020, Dylan Company declared its non-current asset (land) as a dividend with a carrying value of P2,600,000 and has a current fair value of P2,405,000. On December 31, 2020, the non-current asset has a fair value of P2,730,000. The non-current asset was distributed on March 31, 2021 when its fair value was P2,925,000. a. What amount should be charged to retained earnings at the time the dividend was declared? b. What amount of property dividends payable should the company disclose in their December 31, 2020 statement of financial position? c. What amount of asset held for disposal should the company disclose in their December 31, 2020 statement of financial position?

On October 31, 2020, Dylan Company declared its non-current asset (land) as a dividend with a carrying value of P2,600,000 and has a current fair value of P2,405,000. On December 31, 2020, the non-current asset has a fair value of P2,730,000. The non-current asset was distributed on March 31, 2021 when its fair value was P2,925,000. a. What amount should be charged to retained earnings at the time the dividend was declared? b. What amount of property dividends payable should the company disclose in their December 31, 2020 statement of financial position? c. What amount of asset held for disposal should the company disclose in their December 31, 2020 statement of financial position?

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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