Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On June 12, 2019, L Company classified a non-current as Held for Sale. On this date, before its reclassification, its amount was P5,000,000 and its
On June 12, 2019, L Company classified a non-current as "Held for Sale." On this date, before its reclassification, its amount was P5,000,000 and its expected selling price was P4,500,000 with expected cost to sell of P300,000. By December 31, 2019, the asset had not yet been sold, but the management is still committed to a plan to sell it, and the sale considered to bc highly probable. The entity estimated that because of recent changes for the demand of the product that is produced by the asset and expected favorable price movement, the asset was now expected to be selling at P5,500,000 with related cost to sell unchanged. Depreciation from July 1 to December 31 would have been P500,000.
Step by Step Solution
★★★★★
3.44 Rating (144 Votes )
There are 3 Steps involved in it
Step: 1
To determine the amount of gain recognized at December 31 2019 as a result of the increase in the fa...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started