NONCURRENT asset held for sale

Problem 6-7 (IFRS) Problem 6-8 (IAA) Clara Company purchased equipment for P5,000,000 on January 1, 2020 with a useful life of 10 years and no residual On April 1, 2020, Brandy Company had a machine with a value. On December 31, 2020, the entity classified the asset cost of P5,000,000 and accumulated depreciation of as held for sale. P3, 750,000. The fair value of the equipment on December 31, 2020 is P4.200,000 and the cost of disposal is P50,000. On April 1, 2020, the entity classified the machine as held for sale and decided to sell the machine within one year. On December 31, 2021, the fair value of the equipment is P3,500,000 and the cost of disposal is P100,000. On April 1, 2020, the machine had an estimated selling price of P500,000 and a remaining useful life of two years. On December 31, 2021, the entity believed that the criteria for classification as held for sale can no longer be met. P50,000. It is estimated that the disposal cost of the machine will be Accordingly, the entity decided not to sell the asset but to continue to use it. On December 31, 2020, the estimated selling price of the machine had increased to P750,000 with estimated disposal 1. What is the impairment loss to be recognized on cost of P100,000. December 31, 2020? cost What is the impairment loss to be recognized on April 1, 20202 a. 350,000 b. 300,000 AD ( IM/ 10 12 yrs ) ( IM ) 800.000 CA DEC 312020 4 450,000 d. 750,000 FV - lust (2 MM - LOOK ) ( 7.24 ) 800,000 750,000 0 Practical 2. What is the measurement of the equipment that ceases to be held for sale on December 31, 2021? 2. What amount should be recognized as gain on reversal of Chancial 4.000,000 impairment on December 31, 2020? be 3,500,000 C. 3,400.000 a. 468,750 d. 4.150.000 368.750 c. 300.000 3. What amount should be recognized as gain or loss as a d. 200,000 cunting result of the reclassification in 2021? 750.000 gain 750.000 loss TRACY 150.000 gain 150,000 loss 192 193