Reference no: EM132935844

Questions -

Q1) The IT Corp. accounts for non-current assets using the cost model. On 25 April 2021, IT Corp. classified a non-current asset as held for sale in accordance with PFRS5. At that date the asset's carrying amount was P32,000, its fair value was estimated at P22,000 and the costs to sell at P3,200. On 15 May 2021 the asset was sold for net proceeds of P17,400.

In IT Corp.'s statement of comprehensive income for the year ended 30 June 2021, what amount should be included as loss on disposal?

Q2) IT Corp. received dividends from its ordinary share investments during the year 2020 as follows:

A stock dividend of 10,000 shares from Sprite Company when the market price of Sprite's share was P10.

A cash dividend of P1,500,000 from Tubig Company in which IT owns a 15% interest - 5,000 shares of Chili Company in lieu of a cash dividend of P20 per share. The market price of Chili Company's share was P150. IT Corp. holds originally 50,000 shares of Chili Company. IT Corp. owns 5% interest in Chili Company. What amount of dividend revenue should IT Corp. report in its 2020 income statement?