suns incorporated classified their buildings as held for sale on june 1, 2020. on this date, the carrying value of the building is 5,500,000 while its related accumulated depreciatio s 2,000,000. Its fair value less cost to sell of 100,000 was 4,500,000. On december 31 2020, the fair value less cost to sell of the building was 4,200,000. On December 31 2021, the building is still unsold but the criteria for classification as heldfor sale is still met. Its fair value less cost to sell on this date was 4,600,000. On May 15 2022, the building was sold for 4,650,000. Determine the amount of impairment loss recognized on date of reclassification?
suns incorporated classified their buildings as held for sale on june 1, 2020. on this date, the carrying value of the building is 5,500,000 while its related accumulated depreciatio s 2,000,000. Its fair value less cost to sell of 100,000 was 4,500,000. On december 31 2020, the fair value less cost to sell of the building was 4,200,000. On December 31 2021, the building is still unsold but the criteria for classification as heldfor sale is still met. Its fair value less cost to sell on this date was 4,600,000. On May 15 2022, the building was sold for 4,650,000. Determine the amount of impairment loss recognized on date of reclassification?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 5MC: At the beginning of 2019, Conley Company purchased an asset at a cost of 10,000. For financial...
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suns incorporated classified their buildings as held for sale on june 1, 2020. on this date, the carrying value of the building is 5,500,000 while its related accumulated depreciatio s 2,000,000. Its fair value less cost to sell of 100,000 was 4,500,000.
On december 31 2020, the fair value less cost to sell of the building was 4,200,000.
On December 31 2021, the building is still unsold but the criteria for classification as heldfor sale is still met. Its fair value less cost to sell on this date was 4,600,000.
On May 15 2022, the building was sold for 4,650,000.
Determine the amount of impairment loss recognized on date of reclassification?
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