On December 1, 2019, Joy Corporation decided to dispose of an item of plant that is carried in its records at a cost of P450,000, with accumulated depreciation of P80,000. Depreciation on the plant since it was originally acquired has been charged at P5,000 per month. The company undertook all the necessary actions to be able to classify the asset as held for sale. It is estimated that it could sell the plant for its fair value, P350,000, incurring P10,000 selling costs in the process. On December 31, 2019, the plant had not been sold but, due to a shortage of this type of plant, there had been an increase in the fair value to P360,000 while expected costs to sell remain at P10,000. If Joy Corporation had not sold the plant as of December 31, 2020 and the recoverable amount at that date is P315,00, the plant should be carried in Joy's statement of financial position at 31 December 2020 at
On December 1, 2019, Joy Corporation decided to dispose of an item of plant that is carried in its records at a cost of P450,000, with accumulated
On December 31, 2019, the plant had not been sold but, due to a shortage of this type of plant, there had been an increase in the fair value to P360,000 while expected costs to sell remain at P10,000.
If Joy Corporation had not sold the plant as of December 31, 2020 and the recoverable amount at that date is P315,00, the plant should be carried in Joy's
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