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On July 1, 2019, Niger Company classifies a hotel property a non-current asset held for sale. Immediately before the classification as held for sale, the cost of the property is P100,000 and accumulated depreciation of P40,000. The hotel is depreciated on the straight line method with a useful life of 10 years. The estimate of the fair value less cost to sell on this date is P62,000. On December 31, 2019, the building's fair value less cost to sell was 55,000.
Problem 1: Which of the following is true on the date of reclassification?
Problem 2: Which of the following is true on December 31, 2019?
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