Reference no: EM132696378
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 of the disposal group, what amount should be disclosed separately in equity relating to non-current asset held for sale?
Group of answer choices
a. None
b. P9,000,000
c. P4,000,000
d. P2,000,000