What amount should noncurrent asset held for sale be

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On October 1, 2020 Ethel Company has a building with a cost of P4,000,000 and accumulated depreciation of P3,100.000. The company commits to a plan to sell the building by March 17, 2021. On October 1, 2020, the building has an estimated selling price of P800,000, and it is estimated that selling costs associated with the disposal of the building will be P120,000. On December 31, 2020, the estimated selling price of the building has increased to P1,200,000, with an estimated selling costs remaining at P120,000.

Problem 1: At the time of reclassification as held for sale, what amount should the noncurrent asset held for sale be recognized?

a. P680,000

b. P800,000

c. P780,000

d. P900,000

Reference no: EM132812747

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