The ABC Company accounts for non-current assets using the cost model. On July 20, 2021, ABC Company classified a non-current asset as held for sale in accordance with PFRS 5. At that date, the asset's carrying amount was P24,500, its fair value was estimated at P31,500 and the costs to sell at P3,150. The asset was sold on Oct 18, 2021 for P31,200. Q-27. 12.How much is the impairment loss and at what amount should the asset be stated in ABC Company's statement of financial position at September 30, 2021? 13.How much is the gain on sale to be reported in the September 30, 2021 statement of income?
The ABC Company accounts for non-current assets using the cost model. On July 20, 2021, ABC Company classified a non-current asset as held for sale in accordance with PFRS 5. At that date, the asset's carrying amount was P24,500, its fair value was estimated at P31,500 and the costs to sell at P3,150. The asset was sold on Oct 18, 2021 for P31,200. Q-27. 12.How much is the impairment loss and at what amount should the asset be stated in ABC Company's statement of financial position at September 30, 2021? 13.How much is the gain on sale to be reported in the September 30, 2021 statement of income?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The ABC Company accounts for non-current assets using the cost model. On July 20, 2021, ABC Company classified a non-current asset as held for sale in accordance with PFRS 5. At that date, the asset's carrying amount was P24,500, its fair value was estimated at P31,500 and the costs to sell at P3,150. The asset was sold on Oct 18, 2021 for P31,200. Q-27.
12.How much is the impairment loss and at what amount should the asset be stated in ABC Company's statement of financial position at September 30, 2021?
13.How much is the gain on sale to be reported in the September 30, 2021 statement of income?
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