Salvador Company is committed to a plan to sell its headquarters building and has initiated actions to locate a buyer. As of this date, the building has a carrying amount of P5,000,000, a fair value of P6,000,000 and estimated costs to sell of P200,000. 3) How should Salvador classify the headquarters building? A. Included under property, plant and equipment at P5,000,000. B. Included under property, plant and equipment at P5,800,000. C. Classified as held for sale at P5,000,000. D. Classified as held for sale at P5,800,000.

Salvador Company is committed to a plan to sell its headquarters building and has initiated actions to locate a buyer. As of this date, the building has a carrying amount of P5,000,000, a fair value of P6,000,000 and estimated costs to sell of P200,000. 3) How should Salvador classify the headquarters building? A. Included under property, plant and equipment at P5,000,000. B. Included under property, plant and equipment at P5,800,000. C. Classified as held for sale at P5,000,000. D. Classified as held for sale at P5,800,000.

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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51
PEARS Company owned three investment properties. Details of the properties are as follows: (see photo)
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