Reference no: EM133178465
Question - Zest Company noted the following information regarding its returnable containers for fiscal year 2022:
Balance of Deposits for Returnable Containers, 01/01/22 - P250,000
Deposits received for containers of products sold during the year - P800,000
Deposits refunded during the year upon return of containers - P720,000
Deposits forfeited for containers not returned within the prescribed period - P60,000
Cost of containers not returned within the prescribed period - P55,000
Accumulated depreciation on containers not returned within the prescribed period - P15,000
Required - How much is the "Gain on Sale of Returnable Containers" to be recognized by Zest in its Statement of Comprehensive Income for fiscal year 2022?
a. P0
b. P20,000
c. P80,000
d. P140,000