but to continue to use it. Problem 6-9 (IFRS) Affable Company purchased an equipment for P5,000,000 January 1, 2020. The equipment had a useful life of 5 years as held for sale. On such date, the fair value less cost of On December 31, 2020, the entity classified the equipment On December 31, 2021, the entity believed that the criteria for classification as held for sale can no longer be met. Accordingly, the entity decided not to sell the equipment On December 31, 2021, the fair value less cost of disposal of the equipment was P2,700,000. 1. What is the carrying amount of the equipment December 31, 2020 before classification as held for sale? a. 5,000,000 b. 4,000,000 c. 3,500,000 d. 4,500,000 2. What amount of impairment loss should be recognized in 2020? a. 1,500,000 b. 1,000,000 500,000 d. 0 C. 3. What amount should be included in profit or loss in 2021 as a result of the reclassification of the equipment to property, plant and equipment? a. 800,000 gain b. 800,000 loss c. 300,000 gain d. 300,000 gain 4. What is the adjusted carrying amount of the equipment on December 31, 2022? a. 2,700,000 b. 1,800,000 C. 2,000,000 d. 3,000,000 194