Reference no: EM132696371
SC Corporation plans to dispose of a group of net assets that form part of a disposal group. The net assets at December 31, 2020 are:
-----------------------------------------------------------------------Carrying Value at December 31, 2020
Goodwill ----------------------------------------------------------------------- 6,000,000
Property, Plant and Equipment ---------------------------------------------18,000,000
Inventory------------------------------------------------------------------------10,000,000
Financial Assets (profit of P2,000,000 recognized in equity) ---------7,000,000
Financial liabilities ------------------------------------------------------------( 4,000,000)
Total ----------------------------------------------------------------------------P37,000,000
Before the date of reclassification, the property, plant and equipment had a fair value of P16,000,000, the inventory has a net realizable value of P9,000,000. The fair value less costs to sell of the disposal group is P25,000,000.
Problem 1: Immediately after classification as held for sale, what amount of liability directly associated with the disposal group should be presented in the liability section of the statement of financial position?
Group of answer choices
a. P2,000,000
b. None
c. P9,000,000
d. P4,000,000