The next two items are based on the following information: The following schedule lists the general price-level index at the end of each of the 5 indicated years: 20X5……………..100 20X6………………110 20X7……………….115 20X8……………..120 20X9…………......140 3. In December 20X8, the Meetu Corporation purchased land for P300,000. The land was held until December 20X9, when it was sold for P400,000. The historical cost/constant peso statement of profit or loss for the year ended December 31, 20X9, should include how much gain or loss on this sale? a. 20,000 loss b. 20,000 general price-level loss c. 50,000 gain d. 100,000 gain 4. On January 1,20X6, the Silver Company purchased equipment for P300,000. The equipment was being depreciated over an estimated life of 10 years on the straight-line method, with no estimated residual value. On December 31, 20X9, the equipment was sold for P200,000. The historical cost/constant peso statement of profit or loss prepared for the year ended December 32, 20X9, should include how much gain or loss from this sale? a.10,600 loss b.16,000 gain c. 20,000 gain d. 52,000 loss
The next two items are based on the following information:
The following schedule lists the general price-level index at the end of each of the 5 indicated years:
20X5……………..100
20X6………………110
20X7……………….115
20X8……………..120
20X9…………......140
3. In December 20X8, the Meetu Corporation purchased land for P300,000. The land was held until December 20X9, when it was sold for P400,000. The historical cost/constant peso statement of profit or loss for the year ended December 31, 20X9, should include how much gain or loss on this sale?
a. 20,000 loss
b. 20,000 general price-level loss
c. 50,000 gain
d. 100,000 gain
4. On January 1,20X6, the Silver Company purchased equipment for P300,000. The equipment was being
a.10,600 loss
b.16,000 gain
c. 20,000 gain
d. 52,000 loss
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