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What amount should be included in profit of loss

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Reference no: EM132998597

Question - A company purchased equipment for P5,000,000 on January 1, 20X8. The equipment has a useful life of five (5) years with o residual value.

On December 31, 20X8, The entity classifies the equipment as held for sale. On such date, The fair value less cost of disposal of the equipment was P3,500,000.

On December 31, 20X9, the entity believed that the criteria for classification as held for sale could no longer be met. Accordingly, the entity decided not to sell the equipment but to continue to use it.

On December 31, 20X9, the fair value less cost of disposal of the equipment was P2,700,000.

Required -

-What is the carrying amount of the equipment on December 31, 20x8 before it was classified as held for sale?

-What amount should be recognized as impairment loss in 20X8?

-What amount should be included in profit of loss in 20X9 as a result of the reclassification of the equipment to property, plant, and equipment?

-What is the adjustment carrying amount of the equipment on December 31, 2X20?

Reference no: EM132998597

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