Brave Corporation acquired equipment on January 3, 2018 at a cost of P100,000. The estimated useful life of the equipment is 10 years with estimated residual value of P10,000. The company uses straight-line depreciation, computed to the nearest month. On October 1, 2021, the equipment was made "held for sale". It's fair value on this date was P50,000 and the cost to sell was estimated at P2,000. In January 2022, the asset was sold for P50,000 and disposal cost incurred amounted to P3,000. (Brave Corporation uses Fair value model) 12. At what amount should the non-current assets held for sale be recorded on Oct. 1, 2021? 13. How much impairment loss is to be recorded by Brave relating to the non-current assets held for sale? 14. How much gain(loss) is to be reported by Frozen on the disposal of the non-current assets held for sale?
Brave Corporation acquired equipment on January 3, 2018 at a cost of P100,000. The estimated useful life of the equipment is 10 years with estimated residual value of P10,000. The company uses straight-line depreciation, computed to the nearest month. On October 1, 2021, the equipment was made "held for sale". It's fair value on this date was P50,000 and the cost to sell was estimated at P2,000. In January 2022, the asset was sold for P50,000 and disposal cost incurred amounted to P3,000. (Brave Corporation uses Fair value model) 12. At what amount should the non-current assets held for sale be recorded on Oct. 1, 2021? 13. How much impairment loss is to be recorded by Brave relating to the non-current assets held for sale? 14. How much gain(loss) is to be reported by Frozen on the disposal of the non-current assets held for sale?
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
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 7RE: Bliss Company owns an asset with an estimated life of 15 years and an estimated residual value of...
Related questions
Question
Brave Corporation acquired equipment on January 3, 2018 at a cost of P100,000. The estimated useful life of the equipment is 10 years with estimated residual value of P10,000. The company uses straight-line depreciation , computed to the nearest month. On October 1, 2021, the equipment was made "held for sale". It's fair value on this date was P50,000 and the cost to sell was estimated at P2,000. In January 2022, the asset was sold for P50,000 and disposal cost incurred amounted to P3,000. (Brave Corporation uses Fair value model)
12. At what amount should the non-current assets held for sale be recorded on Oct. 1, 2021?
13. How much impairment loss is to be recorded by Brave relating to the non-current assets held for sale?
14. How much gain(loss) is to be reported by Frozen on the disposal of the non-current assets held for sale?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning