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On July 1, 2020, Peter Parker Company has a building with a cost of P4,000,000 and accumulated depreciation of P1,600,000. On the same date, Peter Parker Company commits to a plan to sell the building by February 1, 2021. The building has a fair value of P2,000,000 and it is estimated that the selling cost of the building will be P150,000. As of July 1, 2020, the building has a remaining life of 15 years.
Problem 1: What is the amount to be reported as the carrying value of the building-held for sale as of December 31, 2020?
Group of answer choices
a. P1,933,333
b. P2,000,000
c. P1,788,333
d. P1,850,000
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