On January 10, 2021, Halo-Halo Enterprises had an equipment with a carrying amount of P2,000,000. On the same day, the entity classified the equipment as held for sale with an estimated selling price of P1,900,000 and disposal cost of P100,000. The remaining life of the equipment is for 5 years. On December 31, 2021, the estimated selling price of the equipment had increased to P2,200,000 with estimated selling costs of P50,000. What amount should be reported as gain on reversal of impairment in 2021?
On January 10, 2021, Halo-Halo Enterprises had an equipment with a carrying amount of P2,000,000. On the same day, the entity classified the equipment as held for sale with an estimated selling price of P1,900,000 and disposal cost of P100,000. The remaining life of the equipment is for 5 years. On December 31, 2021, the estimated selling price of the equipment had increased to P2,200,000 with estimated selling costs of P50,000. What amount should be reported as gain on reversal of impairment in 2021?
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 5EB: Steele Corp. purchases equipment for $30,000. Regarding the purchase, Steele paid shipping of...
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2. On January 10, 2021, Halo-Halo Enterprises had an equipment with a carrying amount of P2,000,000. On the same day, the entity classified the equipment as held for sale with an estimated selling price of P1,900,000 and disposal cost of P100,000. The remaining life of the equipment is for 5 years. On December 31, 2021, the estimated selling price of the equipment had increased to P2,200,000 with estimated selling costs of P50,000. What amount should be reported as gain on reversal of impairment in 2021?
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