3. On January 1, 2011, Villa Company classified as held for sale a noncurrent asset with a carrying amount of P5,000,000. On this date, the asset is expected to be sold for P4,600,000. Reasonable disposal cost to be incurred on sale is expected at P200,000. By December 31, 2011, the asset had not been sold and management after considering its options decided to place back the noncurrent asset into operations. On that date, the entity estimated that the noncurrent asset is expected to be sold at P4,300,000 with disposal cost of P50,000. The carrying amount of the noncurrent asset is P4,000,000 on December 31, 2011 if the noncurrent asset is not classified as held for sale. What is the carrying amount of the asset that should be reported in the statement of financial position on December 31, 2011? O a. 5,000,000 O b. 4,000,000 O c. 4,400,000 O d. 4,250,000

3. On January 1, 2011, Villa Company classified as held for sale a noncurrent asset with a carrying amount of P5,000,000. On this date, the asset is expected to be sold for P4,600,000. Reasonable disposal cost to be incurred on sale is expected at P200,000. By December 31, 2011, the asset had not been sold and management after considering its options decided to place back the noncurrent asset into operations. On that date, the entity estimated that the noncurrent asset is expected to be sold at P4,300,000 with disposal cost of P50,000. The carrying amount of the noncurrent asset is P4,000,000 on December 31, 2011 if the noncurrent asset is not classified as held for sale. What is the carrying amount of the asset that should be reported in the statement of financial position on December 31, 2011? O a. 5,000,000 O b. 4,000,000 O c. 4,400,000 O d. 4,250,000

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 74P

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Similar questions

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