A building owned and previously occupied by the company was vacated and was being negotiated for sale. The sale is highly probable and is expected to be consummated within 6 months. The building had a cost of P20,000,000 and accumulated depreciation of P12,000,000. The fair value of the building is P9,000,000. The company expects to incur selling costs of P1,500,000 on the disposal of this building. Assume that the building was sold after the end of the reporting period at P9,200,000, after incurring disposal cost of P1,300,000. How is the profit (before income tax) during the year of sale affected?

Avalon Industries buys equipment for $90,000, expects to use it for six years, and then sell it for $6,000. Using the straight-line method, the company should report annual depreciation for the equipment of: Multiple Choice O $15,000. O O $14,000. $28,000. $31,750.

Norfolk ​Plc., an IFRS​ reporter, is revaluing equipment with a carrying value of £984,500 to its fair value of £964,500. The original cost of the equipment was £1,400,000. The equipment has a 10​-year useful life and scrap value of £15,000. Norfolk uses​ straight-line depreciation. Assume that Norfolk eliminates all prior accumulated depreciation and adjusts the historical cost to fair value.   a. What is the revaluation surplus or unrealized​ loss? b. Where does the firm report the revaluation surplus or unrealized loss in the financial​ statements? c. What are the journal entries to record the​ revaluation? d. What is the depreciation expense on the equipment after the​ revaluation? e. Norfolk chooses to take any revaluation surplus to retained earnings over the​ equipment's remaining useful life. What is the amount of the​ surplus, if​ any, taken to retained earnings in the year after​ revaluation? f. If Norfolksells the equipment at the end of…

*On October 1, 20X3, Builder Company has a building with a cost of P4,000,000 and accumulated depreciation of P3,100,000. The company commits to a plan to sell the building by February 1, 20X4. On October 1, 20X3, the building has an estimated selling price of P800,000 and it is estimated that selling costs associated with the disposal of the building will be P120,000. On December 31, 20X3, the estimated selling price of the building has increased to P1,200,000, with estimated selling costs remaining at P120,000.At the time of reclassification as held for sale, what amount should the noncurrent asset held for sale be recognized? a. 680,000 b. 780,000 c. 800,000 d. 900,000 *Refer to the problem above, What amount of loss should Builder Company recognize at the time the building was reclassified as held for sale? a. None b. 100,000 c. 120,000 d. 220,000 *Refer to the problem above, As of December 31, 20X3, what amount of gain on recovery should Builder Company recognize related to the…