1. On January 1, 2022, ABC Company classifies a hotel property a non-current asset held for sale. Immediately before the classification as held for sale, the carrying amount of the property is P400,000,000 (cost of P500,000,000 and accumulated depreciation of P100,000,000). The hotel is depreciated on the straight-line method with a useful life of 50 years. The estimate of the fair value less cost to sell on this date is P350,000,000. On January 1, 2023 no buyer could be identified. On this date, management concludes that the criteria for classification could not be met. The estimate of the fair value less cost to sell is revised to P340,000,000 while the value in use at the time is estimated at P380,000,000. a. What amount of impairment loss should ABC Company recognize at the date the asset was classified as held for sale? b. What is the amount taken to profit or loss on the date the asset was reclassified back to property, plant and equipment? c. What is the depreciation expense for 2023 after the asset was reclassified back to property, plant and equipment? 2. XYZ Inc. has two business segments, Segment A and Segment B. Segment A's business operation is continuing. Segment B met the criteria to be classified as "held for sale". The board of directors was able to dispose this segment (B) on September 1, 2021. Net proceeds from the sale were P20,000,000; while the segments' carrying amount on September 1, 2021 was P18,000,000. The following pertains to the results of the operations of Segment A & B during 2021: Segment B Revenue Selling and general expenses Income tax 35% Segment A - January 1 December 31, 2021 January 1 December 31, 2021 25,000,000 15,000,000 2,000,000 15,000,000 a. How much shall be presented as Discontinued operations on the face of the income statement? b. How much shall be presented as profit/loss on the face of the income statement? QUESTION 1. The following information relates to BernFord Corporation for the year ended June 30, 2022. Sales revenue Opening balance of trade receivables (net of allowance) Closing balance of trade receivable (net of allowance) Doubtful debt expense Increase in allowance for doubtful debts 450,000 100,000 132,500 5,000 2,000 a. Bad debts are written off against the allowance for doubtful debts. What is the amount of cash collected from the customers during the year ended June 30, 2022? QUESTION 2. The KCMB Company presented the following income statement. KCMB Company Income Statement For the Year Ended December 31, 2020 Sales Cost of Goods Sold Gross profit Operating expenses: Selling Administrative Net income 10,350,000 7,050,000 3,300,000 675,000 1,050,000 1,725,000 1,575,000 Additional information: a. Accounts receivable decreased P540,000 during the year. b. Prepaid expenses increased P255,000 during the year. c. Accounts payable to suppliers of merchandise decreased P412,500 during the year. d. Accrued expenses payable decreased P150,000 during the year. e. Administrative expenses include depreciation expense of P90,000. f. Inventories decreased by P450,000. 1. What is the total amount of cash paid for operating expenses during the year? 2. What is the net amount of cash provided by operating activities