Masa Khit Nha Company accounted for noncurrent assets using the revaluation model. On August 1, 2019, the entity classified a land as held for sale. At that date, the carrying amount of the land was P7,500,000 and the balance in the revaluation surplus was P2,250,000. At same date, the fair value of the land was estimated at P8,250,000 and the cost of disposal at P150,000. On December 31, 2019, the fair value less cost of disposal of the land did not change. The land was sold on February 1, 2020 for P9,000,000. What is the adjusted carrying amount of the land on December 31, 2019?
Masa Khit Nha Company accounted for noncurrent assets using the revaluation model. On August 1, 2019, the entity classified a land as held for sale. At that date, the carrying amount of the land was P7,500,000 and the balance in the revaluation surplus was P2,250,000. At same date, the fair value of the land was estimated at P8,250,000 and the cost of disposal at P150,000. On December 31, 2019, the fair value less cost of disposal of the land did not change. The land was sold on February 1, 2020 for P9,000,000. What is the adjusted carrying amount of the land on December 31, 2019?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Masa Khit Nha Company accounted for noncurrent assets using the revaluation model. On August 1, 2019, the entity classified a land as held for sale. At that date, the carrying amount of the land was P7,500,000 and the balance in the revaluation surplus was P2,250,000. At same date, the fair value of the land was estimated at P8,250,000 and the cost of disposal at P150,000.
On December 31, 2019, the fair value less cost of disposal of the land did not change. The land was sold on February 1, 2020 for P9,000,000.
- What is the adjusted carrying amount of the land on December 31, 2019?
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