Hindi Kho Kaya Corporation is using the cost model for noncurrent assets. On November 1, 2020, the entity classified a noncurrent asset as held for sale. At that date, the carrying amount was P3,000,000, the fair value was estimated at P2,200,000, and the cost of disposal at P300,000. On November 22, 2020, the asset was old for net proceeds of P1,600,000.
Hindi Kho Kaya Corporation is using the cost model for noncurrent assets. On November 1, 2020, the entity classified a noncurrent asset as held for sale. At that date, the carrying amount was P3,000,000, the fair value was estimated at P2,200,000, and the cost of disposal at P300,000. On November 22, 2020, the asset was old for net proceeds of P1,600,000.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter8: Property Transactions: Capital Gains And Losses, Section 1231 And Recapture Provisions
Section: Chapter Questions
Problem 38P
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Hindi Kho Kaya Corporation is using the cost model for noncurrent assets. On November 1, 2020, the entity classified a noncurrent asset as held for sale. At that date, the carrying amount was P3,000,000, the fair value was estimated at P2,200,000, and the cost of disposal at P300,000. On November 22, 2020, the asset was old for net proceeds of P1,600,000.
- What amount should be reported as loss on disposal for the year ended December 31, 2020?
- ₱300,000 ₱1,400,000
- ₱500,000 ₱1,100,000
- What is the impairment loss for 2020?
- ₱800,000 ₱1,400,000
₱1,100,000 d. ₱1,700,000
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