Lopez Company accounts for non-current assets using the cost model. On October 30, 2016 Lopez classified a non-current asset as held for sale in accordance with PFRS5. At that date the asset’s carrying amount was P15,000,000, its fair value was estimated at P11,000,000 and the costs to sell at P1,500,000. On November 20, 2016 the asset was sold for net proceeds of P9,200,000. In accordance with PFRS5, what amount should be included as a loss on disposal in Lopez’s statement of comprehensive income for the year ended December 31, 2016?
Lopez Company accounts for non-current assets using the cost model. On October 30, 2016 Lopez classified a non-current asset as held for sale in accordance with PFRS5. At that date the asset’s carrying amount was P15,000,000, its fair value was estimated at P11,000,000 and the costs to sell at P1,500,000. On November 20, 2016 the asset was sold for net proceeds of P9,200,000. In accordance with PFRS5, what amount should be included as a loss on disposal in Lopez’s statement of comprehensive income for the year ended December 31, 2016?
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 11PB: On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received...
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Lopez Company accounts for non-current assets using the cost model. On October 30, 2016 Lopez classified a non-current asset as held for sale in accordance with PFRS5. At that date the asset’s carrying amount was P15,000,000, its fair value was estimated at P11,000,000 and the costs to sell at P1,500,000. On November 20, 2016 the asset was sold for net proceeds of P9,200,000.
In accordance with PFRS5, what amount should be included as a loss on disposal in Lopez’s statement of comprehensive income for the year ended December 31, 2016?
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