An entity accounted for land using the revaluation model. On October 1, 2020, the entity classified the land as held for sale. At that date, the carrying amount of the land was P5,000,000 and the balance in the revaluation surplus was P1,500,000. At the same date, the fair value of th land was estimated at P5,500,000. The estimated cost of disposal is P100,000. On December 31, 2020, the fair value less cost of disposal of the land did not change. On October 1, 2021, the land was sold for PZ000 000 What amount of OCLİS classified to retained earnings in 2021
An entity accounted for land using the revaluation model. On October 1, 2020, the entity classified the land as held for sale. At that date, the carrying amount of the land was P5,000,000 and the balance in the revaluation surplus was P1,500,000. At the same date, the fair value of th land was estimated at P5,500,000. The estimated cost of disposal is P100,000. On December 31, 2020, the fair value less cost of disposal of the land did not change. On October 1, 2021, the land was sold for PZ000 000 What amount of OCLİS classified to retained earnings in 2021
Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges
Section: Chapter Questions
Problem 85P
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Transcribed Image Text:An entity accounted for land using the revaluation model. On October 1,
2020, the entity classified the land as held for sale. At that date, the
carrying amount of the land was P5,000,000 and the balance in the
revaluation surplus was P1,500,000. At the same date, the fair value of the
land was estimated at P5,500,000. The estimated cost of disposal is
P100,000. On December 31, 2020, the fair value less cost of disposal of
the land did not change. On October 1, 2021, the land was sold for
P7,000,000.What amount of OCI is classified to retained earnings in 2021?
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