On October 1, 2021, a company declared to its shareholders a property dividend in the form of pieces of equipment with carrying amount of P960,000 (acquired on October 1, 2015 for P2,400,000). The dividends are for distribution on January 31, 2022. The company provided the following estimate of the asset' fair value: October 1, 2021 P1,050,000 December 31, 2021 1,020,000 January 31, 2022 1,110,000 What amount will be reported in 2021 statement of profit or loss as a result of the foregoing transactions?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On October 1, 2021, a company declared to its shareholders a property dividend in the form
of pieces of equipment with carrying amount of P960,000 (acquired on October 1, 2015 for
P2,400,000). The dividends are for distribution on January 31, 2022. The company provided
the following estimate of the asset' fair value:
October 1, 2021
P1,050,000
December 31, 2021
1,020,000
January 31, 2022
1,110,000
What amount will be reported in 2021 statement of profit or loss as a result of the foregoing
transactions?
Transcribed Image Text:On October 1, 2021, a company declared to its shareholders a property dividend in the form of pieces of equipment with carrying amount of P960,000 (acquired on October 1, 2015 for P2,400,000). The dividends are for distribution on January 31, 2022. The company provided the following estimate of the asset' fair value: October 1, 2021 P1,050,000 December 31, 2021 1,020,000 January 31, 2022 1,110,000 What amount will be reported in 2021 statement of profit or loss as a result of the foregoing transactions?
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