opic: Non-Current Assets Held for Sale and Discontinued Operations 15. Which of the following shall be recognized by the entity in its 20x3 financial statements? Held for ale asset Impairment loss a. P1,100,000 P450,000 b. P1,000,000 P350,000 c. P750,000 P250,000 d. P0 P350,000 16. Requirement: Provide the journal entry on December 31, 20x3.
opic: Non-Current Assets Held for Sale and Discontinued Operations 15. Which of the following shall be recognized by the entity in its 20x3 financial statements? Held for ale asset Impairment loss a. P1,100,000 P450,000 b. P1,000,000 P350,000 c. P750,000 P250,000 d. P0 P350,000 16. Requirement: Provide the journal entry on December 31, 20x3.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Topic: Non-Current Assets Held for Sale and Discontinued Operations
15. Which of the following shall be recognized by the entity in its 20x3 financial statements?
Held for ale asset Impairment loss
a. P1,100,000 P450,000
b. P1,000,000 P350,000
c. P750,000 P250,000
d. P0 P350,000
16. Requirement: Provide the
![15. On December 31, 20x3, the machinery remains unsold. The
fair value of the machinery on December 31, 20x3 is P1,100,000
while costs to sell are estimated at P50,000. The failure to
locate a buyer and complete the sale is beyond the entity's
control. The entity further decreased the sale price to P600,000.
Which of the following shall be recognized by the entity in its
20x3 financial statements?
Held for sale asset
a. P1,100,000
b. P1,000,000
Gain on impairment recovery
P450,000
P350,000
c. P750,000
d. PO
P250,000
P350,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd3a1f87c-4acd-49ed-acd4-55101ae3ee6d%2F096b5bb7-c5a3-4fd3-87a6-5141c841e2b8%2Fa5dn4uy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:15. On December 31, 20x3, the machinery remains unsold. The
fair value of the machinery on December 31, 20x3 is P1,100,000
while costs to sell are estimated at P50,000. The failure to
locate a buyer and complete the sale is beyond the entity's
control. The entity further decreased the sale price to P600,000.
Which of the following shall be recognized by the entity in its
20x3 financial statements?
Held for sale asset
a. P1,100,000
b. P1,000,000
Gain on impairment recovery
P450,000
P350,000
c. P750,000
d. PO
P250,000
P350,000
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