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?
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 11PB: On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received...
Related questions
Question
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?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College