An entity accounted for land using the revaluation model. On October 1, 2020, the entity classified the land as held for sale. At that date, the carrying amount of the land was P5,000,000 and the balance in the revaluation surplus was P1,500,000. At the same date, the fair value of the land was estimated at P5,500,000. The estimated cost of disposal is P100,000. On December 31, 2020, the fair value less cost of disposal of the land did not change. On October 1, 2021, the land was sold for P7,000,000.What amount of OCI is classified to retained earnings in 2021? A. 1,500,000 B. 2,000,000 C. 500,000 D. Zero
An entity accounted for land using the revaluation model. On October 1, 2020, the entity classified the land as held for sale. At that date, the carrying amount of the land was P5,000,000 and the balance in the revaluation surplus was P1,500,000. At the same date, the fair value of the land was estimated at P5,500,000. The estimated cost of disposal is P100,000. On December 31, 2020, the fair value less cost of disposal of the land did not change. On October 1, 2021, the land was sold for P7,000,000.What amount of OCI is classified to retained earnings in 2021? A. 1,500,000 B. 2,000,000 C. 500,000 D. Zero
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
An entity accounted for land using the revaluation model. On October 1,
2020, the entity classified the land as held for sale. At that date, the
carrying amount of the land was P5,000,000 and the balance in the
revaluation surplus was P1,500,000. At the same date, the fair value of the
land was estimated at P5,500,000. The estimated cost of disposal is
P100,000. On December 31, 2020, the fair value less cost of disposal of
the land did not change. On October 1, 2021, the land was sold for
P7,000,000.What amount of OCI is classified to
A. 1,500,000
B. 2,000,000
C. 500,000
D. Zero
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