What amount should be disclosed separately in equity

Assignment Help Financial Accounting
Reference no: EM132747819

Questions -

Question 1 - 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.

What amount of the impairment loss is allocated to the property, plant, and equipment?

a. None

b. P3,000,000

c. P6,000,000

d. P9,000,000

Question 2 - 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.

What amount of the impairment loss is allocated to the goodwill?

a. None

b. P3,000,000

c. P6,000,000

d. P9,000,000

Question 3 - 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.

What amount of the impairment loss is allocated to the inventory?

a. None

b. P3,000,000

c. P6,000,000

d. P9,000,000

Question 4 - 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.

Immediately after classification as held for sale, what amount should be presented as the carrying value of the disposal group?

a. P25,000,000

b. P29,000,000

c. P34,000,000

d. P37,000,000

Question 5 - 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.

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?

a. None

b. P2,000,000

c. P4,000,000

d. P9,000,000

Question 6 - 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.

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?

a. None

b. P2,000,000

c. P4,000,000

d. P9,000,000

Reference no: EM132747819

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