Find what amount of loss to be recognized by peter parker

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Reference no: EM132762599

On July 1, 2020, Peter Parker Company has a building with a cost of P4,000,000 and accumulated depreciation of P1,600,000. On the same date, Peter Parker Company commits to a plan to sell the building by February 1, 2021. The building has a fair value of P2,000,000 and it is estimated that the selling cost of the building will be P150,000. As of July 1, 2020, the building has a remaining life of 15 years.

Problem 1: What is the amount of loss to be recognized by Peter Parker Company in its income statement as a result of reclassification?

Group of answer choices

a. P150,000

b. P550,000

c. None

d. P400,000

Reference no: EM132762599

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