What amount of gain on recovery ethel company recognize

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Problem 1: On October 1, 2020 Ethel Company has a building with a cost of P4,000,000 and accumulated depreciation of P3,100.000. The company commits to a plan to sell the building by March 17, 2021. On October 1, 2020, the building has an estimated selling price of P800,000, and it is estimated that selling costs associated with the disposal of the building will be P120,000. On December 31, 2020, the estimated selling price of the building has increased to P1,200,000, with an estimated selling costs remaining at P120,000. As of December 31, 2020, what amount of gain on recovery should Ethel Company recognize related to the asset held for sale?

a. None

b. P220,000

c. P180,000

d. P400,000

Reference no: EM132812751

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