Abba Company accounted for noncurrent assets using the revaluation model. On June 30, 2021, the entity classified a land as held for sale. At that date, the carrying amount was P2,900,000 and the balance of the revaluation surplus was P200,000. On June 30, 2021, the fair value was estimated at P3,300,000 and the cost of disposal at P200,000. On December 31, 2021, the fair value was estimated at P3,250,000 and the cost of disposal at P250,000. What total amount should be reported as impairment loss for 2021?
Abba Company accounted for noncurrent assets using the revaluation model. On June 30, 2021, the entity classified a land as held for sale. At that date, the carrying amount was P2,900,000 and the balance of the revaluation surplus was P200,000. On June 30, 2021, the fair value was estimated at P3,300,000 and the cost of disposal at P200,000. On December 31, 2021, the fair value was estimated at P3,250,000 and the cost of disposal at P250,000. What total amount should be reported as impairment loss for 2021?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 18E
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Abba Company accounted for noncurrent assets using the revaluation model. On June 30, 2021, the entity classified a land as held for sale.
At that date, the carrying amount was P2,900,000 and the balance of the revaluation surplus was P200,000.
On June 30, 2021, the fair value was estimated at P3,300,000 and the cost of disposal at P200,000.
On December 31, 2021, the fair value was estimated at P3,250,000 and the cost of disposal at P250,000.
What total amount should be reported as impairment loss for 2021?
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