Use the following information for the next four questions:

11.On December 31, 20x1, an entity classifies machinery with historical cost of P3,000,000, accumulated depreciation of P2,000,000 and remaining useful life of 5 years as held for sale. The entity depreciates its machinery using the straight line method with no residual value. The fair value of the machinery on December 31, 20x1 is P800,000 while costs to sell are estimated at P50,000. the sale price of the machinery is P800,000

Held for sale assetImpairment loss

A. P800,000P150,000

B. P750,000P200,000

C. P750,000P250,000

D. P0P250,000

12. Requirement Provide the journal entry on December 31, 20x1.

13. On December 31, 20x2, the machinery remains unsold. The fair value of the machinery on December 31, 20x2 is P700,000 while costs to sell are estimated at P50,000. the entity decreased the sale price to P650,000. which of the following shall be recognized by the entity in its 20x2 financial statements?

Held for sale assetImpairment loss

A. P700,000P100,000

B. P650,000P100,000

C. P650,000P150,000

D. P0P100,000

14. Requirement: Provide the journal entry on December 31, 20x.

15. On December 31, 20x3, the machinery remains unsold. The fair value of the machinery on December 31, 20x3 is P1,100,000 while costs to sell are estimated at P50,000. The failure to locate a buyer and complete the sale is beyond the entity's control. The entity further decreased the sale price to P600,000. which of the following shall be recognized by the entity in its 20x3 financial statements?

Held for sale assetImpairment loss

A. P1,100,000P450,000

B. P1,000,000P350,000

C. P750,000P250,000

D. P0P350,000

PFRS 5 Non-current Assets held for sale and discounted Operations does not apply to which of the following assets

a. Investment property meassred under the cost model

b.Inventment in associate or subsidaery or joint venture

c.Intangible asstes

d.Inventories and accunts receivable