Thousand Company classified an equipment as held for sale on January 1, 2021. On this date the equipment has a carrying value of 5 million and the related accumulated depreciation is 1.2 million. The equipment has a fair value less cost to sell of 4.8 million on the date of reclassification. On December 31, 2021, the equipment remained unsold but it still meets the criteria to be classified as held for sale. Its fair value less cost to sell on this date was 4.9 million. On December 31, 2022, the equipment is still unsold but the criteria to be classified as held for sale are still met. Its fair value on this date was 5,050,000. On December 31, 2023, the equipment is still unsold but the criteria to be classified as held for sale are still met. Its fair value on this date was 4.6 million. On December 31, 2024, the company abandoned its original plan to sell the asset. Its fair value less cost to sell on this date was 4.4 million. If the equipment were not classified as held for sale, its carrying value on this date should have been 4.45 million. 1. What amount of gain/(loss) on reclassification shall be recognized on December 31, 2024? 2. what amount of recovery of impairment loss shall be recognized in december 31, 2021? 3. what is the initial carrying amount?
Thousand Company classified an equipment as held for sale on January 1, 2021. On this date the equipment has a carrying value of 5 million and the related
On December 31, 2021, the equipment remained unsold but it still meets the criteria to be classified as held for sale. Its fair value less cost to sell on this date was 4.9 million.
On December 31, 2022, the equipment is still unsold but the criteria to be classified as held for sale are still met. Its fair value on this date was 5,050,000.
On December 31, 2023, the equipment is still unsold but the criteria to be classified as held for sale are still met. Its fair value on this date was 4.6 million.
On December 31, 2024, the company abandoned its original plan to sell the asset. Its fair value less cost to sell on this date was 4.4 million. If the equipment were not classified as held for sale, its carrying value on this date should have been 4.45 million.
1. What amount of gain/(loss) on reclassification shall be recognized on December 31, 2024?
2. what amount of recovery of impairment loss shall be recognized in december 31, 2021?
3. what is the initial carrying amount?
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