Solution-What is the adjusted carrying amount of the

What is the adjusted carrying amount of the equipment

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Reference no: EM132803378

Salientes Company purchased an equipment for P6,000,000 on January 1, 2019. On December 21. 2019, the equipment was classified as held for sale. On such date, the fair value less cost of disposal of the equipment was P4,000,000. On December 31, 2020, the entity believed that the criteria for classification as held for sale can no longer be met. Accordingly, the entity decided not to sell the equipment but to continue to use it. On December 31, 2020, the fair value less cost of disposal of the equipment was P2,500,000. The useful life of the equipment is 5 years.

Problem a. What is the carrying amount of the equipment on December 31, 2019 before classification as held for sale?

Problem b. What amount of impairment loss should be recognized in 2019?

Problem c. What amount should be included in profit or loss in 2020 as a result of the reclassification of the equipment to property, plant and equipment?

Problem d. What is the adjusted carrying amount of the equipment on December 31, 2021?

Reference no: EM132803378

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What is the adjusted carrying amount of the equipment

Reference no: EM132803378

Reference no: EM132803378

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