On January 1, 2020, CDO Corporation determined to sell a group of assets within its shoe manufacturing division, as it believed it was cheaper to buy the parts from China. The assets that it wanted to sell had the following carrying amounts: Factory P22,000,000 Accumulated depreciation. Raw materials (12.000.000) 3.800,000 2.200,000 The management of CDO calculated the fair value less costs to sell of the disposal group to be P14.400,000 Spare parts The assets were sold on February 15, 2020 for P15.400,000, with selling costs amountinit to P700.000
On January 1, 2020, CDO Corporation determined to sell a group of assets within its shoe manufacturing division, as it believed it was cheaper to buy the parts from China. The assets that it wanted to sell had the following carrying amounts:
Factory
P22,000,000
Raw materials
(12.000.000) 3.800,000 2.200,000
The management of CDO calculated the fair value less costs to sell of the disposal group to be P14.400,000
Spare parts
The assets were sold on February 15, 2020 for P15.400,000, with selling costs amountinit to P700.000
The following balances have been excerpted from Tito Piccolo's
December 31
January 1
Prepaid Insurance
6,000
P 7,500.
Interest Receivable
Salaries Payable
3,700
61.500
53,000
14.500
550.000
415,000
25,000
Allowance for
40,000
Tito Piccolo Company reported the following during 2020 the following items:
Insurance premiums paid
41,500
Interest collected
123.500
Salaries paid
Sales
9
P
481,000
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