On January 2, 2022, Milk Tea Company acquired a building costing P6,000,000. Milk Tea Company estimated that the useful life of the property is 20 years. Milk Tea Company's policy is to depreciate all depreciable assets using the straight-line method, without scrap. On January 2, 2027, the building was remeasured at P3,000,000 and with a remaining revised useful life of 20 years. On January 2, 2032, Milk Tea Company converted the property into investment property when the fair value is P3,500,000. On January 2, 2032, what amount of gain or impairment recovery Should the company recognize? P125,000 P1,250,000 P1,125,000 None

On January 2, 2022, Milk Tea Company acquired a building costing P6,000,000. Milk Tea Company estimated that the useful life of the property is 20 years. Milk Tea Company's policy is to depreciate all depreciable assets using the straight-line method, without scrap. On January 2, 2027, the building was remeasured at P3,000,000 and with a remaining revised useful life of 20 years. On January 2, 2032, Milk Tea Company converted the property into investment property when the fair value is P3,500,000. On January 2, 2032, what amount of gain or impairment recovery Should the company recognize? P125,000 P1,250,000 P1,125,000 None

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...

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