Pearl Company accounts for noncurrent assets using the cost model. On October 30, 2012, the entity classified a noncurrent asset as held for sale. At that date, the asset's carrying amount was P1,500,000, its fair value was estimated at P1,100,000 and the cost to sell at P150,000. On November 20, 2012, the asset was sold for net proceeds of P800,000. What amount should be included as loss on disposal in the statement of comprehensive income for the year ended December 31, 2012?
Pearl Company accounts for noncurrent assets using the cost model. On October 30, 2012, the entity classified a noncurrent asset as held for sale. At that date, the asset's carrying amount was P1,500,000, its fair value was estimated at P1,100,000 and the cost to sell at P150,000. On November 20, 2012, the asset was sold for net proceeds of P800,000. What amount should be included as loss on disposal in the statement of comprehensive income for the year ended December 31, 2012?
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 44P
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Pearl Company accounts for noncurrent assets using the cost model. On October 30, 2012, the entity classified a noncurrent asset as held for sale. At that date, the asset's carrying amount was P1,500,000, its fair value was estimated at P1,100,000 and the cost to sell at P150,000. On November 20, 2012, the asset was sold for net proceeds of P800,000. What amount should be included as loss on disposal in the statement of comprehensive income for the year ended December 31, 2012?
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