An entity accounted for land using the revaluation model. On October 1,2020, the entity classified a 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 PI 00,000. 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.
An entity accounted for land using the revaluation model. On October 1,2020, the entity classified a 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 PI 00,000. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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An entity accounted for land using the revaluation model. On October 1,2020, the entity classified a 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 PI 00,000. 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 is the impairment loss in 2020
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