What amount was reported in profit or loss on june

Reference no: EM132814205

On June 30, 2019, Landlite Co. decided to dispose of its building and undertook all the necessary actions to be able to classify the assets as held for sale. On that date, the building's fair value less cost to sell was P2,300,000. The building was carried at cost of P5,000,000 with accumulated depreciation of P2,000,000 at December 31, 2018. Depreciation on the building was consistently provided at P400,000 annually and the depreciation for 2019 had not yet been provided. On December 31, 2019, the building's fair value less cost to sell was P2,500,000. On June 30, 2020, Landlite's management changed its plan and decided to use again the building in its operation. On that date, the building's value in use was P2,080,000 while its fair value less cost to sell was P2,150,000.

Question 1: What is the should be carrying amount of the building on June 30, 2020 had it not been classified as held for sale?

Question 2: What was the recoverable amount of the building on June 30, 2020?

Question 3: What amount was reported in profit or loss on June 30, 2020 as a result of the reclassification from held for sale to held for use?

Question 4: What amount was credited to building held for sale on June 30, 2020?

Question 5: What amount of depreciation shall be recorded for the building on December 31, 2020?

Reference no: EM132814205

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