opic: Non-Current Assets Held for Sale and Discontinued Operations   15. Which of the following shall be recognized by the entity in its 20x3 financial statements? Held for ale asset                            Impairment loss      a. P1,100,000                                  P450,000      b. P1,000,000                                 P350,000      c. P750,000                                 P250,000      d. P0                                           P350,000   16. Requirement: Provide the journal entry on December 31, 20x3.

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Chapter1: Financial Statements And Business Decisions
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Topic: Non-Current Assets Held for Sale and Discontinued Operations

 

15. Which of the following shall be recognized by the entity in its 20x3 financial statements?

Held for ale asset                            Impairment loss

     a. P1,100,000                                  P450,000

     b. P1,000,000                                 P350,000

     c. P750,000                                 P250,000

     d. P0                                           P350,000

 

16. Requirement: Provide the journal entry on December 31, 20x3.

15. On December 31, 20x3, the machinery remains unsold. The
fair value of the machinery on December 31, 20x3 is P1,100,000
while costs to sell are estimated at P50,000. The failure to
locate a buyer and complete the sale is beyond the entity's
control. The entity further decreased the sale price to P600,000.
Which of the following shall be recognized by the entity in its
20x3 financial statements?
Held for sale asset
a. P1,100,000
b. P1,000,000
Gain on impairment recovery
P450,000
P350,000
c. P750,000
d. PO
P250,000
P350,000
Transcribed Image Text:15. On December 31, 20x3, the machinery remains unsold. The fair value of the machinery on December 31, 20x3 is P1,100,000 while costs to sell are estimated at P50,000. The failure to locate a buyer and complete the sale is beyond the entity's control. The entity further decreased the sale price to P600,000. Which of the following shall be recognized by the entity in its 20x3 financial statements? Held for sale asset a. P1,100,000 b. P1,000,000 Gain on impairment recovery P450,000 P350,000 c. P750,000 d. PO P250,000 P350,000
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