On July 1, 2021, Whiskey Company had an equipment with cost of P5,000,000 and accumulated depreciation of P3,000,000. On that date, the entity classified the equipment as held for sale. On same date, the equipment had an estimated selling price of P1,300,000, estimated selling cost of P100,000 and remaining life of 4 years. On December 31, 2021, the estimated selling price of the equipment had increased to P1,500,000 with estimated selling cost of P50,000. What amount should be reported as gain on reversal of impairment in 2021?
On July 1, 2021, Whiskey Company had an equipment with cost of P5,000,000 and accumulated depreciation of P3,000,000. On that date, the entity classified the equipment as held for sale. On same date, the equipment had an estimated selling price of P1,300,000, estimated selling cost of P100,000 and remaining life of 4 years. On December 31, 2021, the estimated selling price of the equipment had increased to P1,500,000 with estimated selling cost of P50,000. What amount should be reported as gain on reversal of impairment in 2021?
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
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 8MC: On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was...
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On July 1, 2021, Whiskey Company had an equipment with cost of P5,000,000 and
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