Do not give solution in image Problem on Non-current Assets held for saleOn January 1, 2020, an entity acquired an equipment at a cost of P4,000,0000 to be used in the ordinary course of business. Theequipment has an estimated useful life of 10 years and a residual value of P500.000.On January 1, 2023, the equipment was classified as held for sale. On such date, the fair value cost of disposal was estimated atP1,900,000. On June 30, 2023, the equipment was sold for P1,500,000.Required:1. Prepare the journal entries to removed the equipment from property, plant and equipment and classify it as held for sale onJanuary 1, 2023.2. Prepare the journal entries to measure the equipment held for sale at the lower of carrying amount and fair value less cost ofdisposal on January 1, 2023.3. Prepare the journal entries to record the sale of equipment on June 30, 2023.

Non-current assets categorize as held for sale are those that will be sold within a year by the firm…

Required: 1. Prepare the journal entries to removed the equipment from property, plant and equipment and classify it as held for sale on January 1, 2023. 2. Prepare the journal entries to measure the equipment held for sale at the lower of carrying amount and fair value less cost of disposal on January 1, 2023. 3. Prepare the journal entries to record the sale of equipment on June 30, 2023.

Required: 1. Prepare the journal entries to removed the equipment from property, plant and equipment and classify it as held for sale on January 1, 2023. 2. Prepare the journal entries to measure the equipment held for sale at the lower of carrying amount and fair value less cost of disposal on January 1, 2023. 3. Prepare the journal entries to record the sale of equipment on June 30, 2023.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 6RE

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