Pocholo Company reported an impairment loss of P512,000 in its income statement for the year 2016. This loss was related to a building that was acquired on January 1, 2008 with a cost of P4,000,000 (no residual value). Depreciation on the building is computed on a straight-line basis and annual depreciation on cost is P160,000. Depreciation for the year 2017 was computed based on the asset’s recoverable amount at December 31, 2016. On December 31, 2021, the entity decided to measure its building using revaluation model. This building was then appraised to a fair value of P2,100,000. What amount of gain on impairment recovery should Pocholo report in its 2021 income statement? a. 128,000 b. 352,000 c. 512,000 d. 692,000

Pocholo Company reported an impairment loss of P512,000 in its income statement for the year 2016. This loss was related to a building that was acquired on January 1, 2008 with a cost of P4,000,000 (no residual value). Depreciation on the building is computed on a straight-line basis and annual depreciation on cost is P160,000. Depreciation for the year 2017 was computed based on the asset’s recoverable amount at December 31, 2016. On December 31, 2021, the entity decided to measure its building using revaluation model. This building was then appraised to a fair value of P2,100,000. What amount of gain on impairment recovery should Pocholo report in its 2021 income statement? a. 128,000 b. 352,000 c. 512,000 d. 692,000

Name: Pocholo Company reported an impairment loss of P512,000 in its income
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Description: Pocholo Company reported an impairment loss of P512,000 in its income statement for the year 2016. This loss was related to a building that was acquired on January 1, 2008 with a cost of P4,000,000 (no residual value). Depreciation on the building is

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 66P: At the end of 2020, Magenta Manufacturing Company discovered that construction cost had been...

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