Solution-What amount should be recognized as an impairment

What amount should be recognized as an impairment loss

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Question: Dana company accounted for noncurrent assets using the cost model.

On October 1, 2020, the entity classified an equipment as held for sale.

At the date, the carrying amount of the equipment was P3,200,000 the fair value was estimated at P2,200,000 and the cost of disposal at P200,000.

On December 31, 2020, the asset was sold for net proceeds of P1,850,000.

1. What amount should be recognized as an impairment loss for 2020?

2. What amount should be included as revaluation surplus in Dana's Statement of Comprehensive Income at year end?

Reference no: EM132753351

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What amount should be recognized as an impairment loss

Reference no: EM132753351

Reference no: EM132753351

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