At what amount should the equipment be measured on December 31, 2021? 2. Beauty Company accounted for noncurrent assets using the cost model. On November1, 2021, the entity classified an equipment as held for sale. At that date, the carryingamount of the equipment was P4,000,000, the fair value was estimated at P4,200,000and the cost of disposal at P300,000. On January 30, 2022, the equipment was sold fora net proceed of P3,600,000.

Introduction Non-Current Asset held for sale: If the majority of the carrying value of a…

Answered: eauty Company a „ 2021, the entity -

Business

Accounting

eauty Company a „ 2021, the entity -

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 31P

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Question

At what amount should the equipment be measured on December 31, 2021?

2. Beauty Company accounted for noncurrent assets using the cost model. On November
1, 2021, the entity classified an equipment as held for sale. At that date, the carrying
amount of the equipment was P4,000,000, the fair value was estimated at P4,200,000
and the cost of disposal at P300,000. On January 30, 2022, the equipment was sold for
a net proceed of P3,600,000.

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