Assets Held for Sale On December 31, 2021, Patrice Inc. determined to sell a group of assets within its meat processing plant, as it believed a newly introduced set of machineries would be more economical for the company. The assets that it wanted to sell had the following carrying amounts: Machinery P 2,200,000 Accumulated depreciation 1,200,000 Machinery tools 380,000 Machinery parts 220,000 The management of Patrice Inc. calculated the fair value (based on active market for similar assets ) less costs to sell of the disposal group to be P 1,400,000. The assets were sold on March 17, 2022 for P 1,520,000. Selling costs of P 60,000 were paid. Required: Prepare the entries on December 31, 2021. Prepare the entry for the sale of the assets on March 17, 2022.
Assets Held for Sale On December 31, 2021, Patrice Inc. determined to sell a group of assets within its meat processing plant, as it believed a newly introduced set of machineries would be more economical for the company. The assets that it wanted to sell had the following carrying amounts: Machinery P 2,200,000 Accumulated depreciation 1,200,000 Machinery tools 380,000 Machinery parts 220,000 The management of Patrice Inc. calculated the fair value (based on active market for similar assets ) less costs to sell of the disposal group to be P 1,400,000. The assets were sold on March 17, 2022 for P 1,520,000. Selling costs of P 60,000 were paid. Required: Prepare the entries on December 31, 2021. Prepare the entry for the sale of the assets on March 17, 2022.
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
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 5P: Assets Acquired by Exchange Bremer Company made the following exchanges of assets during 2019: 1....
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Assets Held for Sale
- On December 31, 2021, Patrice Inc. determined to sell a group of assets within its meat processing plant, as it believed a newly introduced set of machineries would be more economical for the company. The assets that it wanted to sell had the following carrying amounts:
|
Machinery |
P 2,200,000 |
|
|
1,200,000 |
|
Machinery tools |
380,000 |
|
Machinery parts |
220,000 |
The management of Patrice Inc. calculated the fair value (based on active market for similar assets ) less costs to sell of the disposal group to be P 1,400,000. The assets were sold on March 17, 2022 for P 1,520,000. Selling costs of P 60,000 were paid.
Required:
- Prepare the entries on December 31, 2021.
- Prepare the entry for the sale of the assets on March 17, 2022.
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