Abba Company accounted for noncurrent assets using the revaluation model. On June 30, 2021, the entity classified a land as held for sale. At that date, the carrying amount was P2,900,000 and the balance of the revaluation surplus was P200,000. On June 30, 2021, the fair value was estimated at P3,300,000 and the cost of disposal at P200,000. On December 31, 2021, the fair value was estimated at P3,250,000 and the cost of disposal at P250,000. What is the adjusted carrying amount of the land on June 30, 2021

Abba Company accounted for noncurrent assets using the revaluation model. On June 30, 2021, the entity classified a land as held for sale. At that date, the carrying amount was P2,900,000 and the balance of the revaluation surplus was P200,000. On June 30, 2021, the fair value was estimated at P3,300,000 and the cost of disposal at P200,000. On December 31, 2021, the fair value was estimated at P3,250,000 and the cost of disposal at P250,000. What is the adjusted carrying amount of the land on June 30, 2021

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 37P

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Abba Company accounted for noncurrent assets using the revaluation model. On June 30, 2021, the entity classified a land as held for sale. At that date, the carrying amount was P2,900,000 and the balance of the revaluation surplus was P200,000. On June 30, 2021, the fair value was estimated at P3,300,000 and the cost of disposal at P200,000. On December 31, 2021, the fair value was estimated at P3,250,000 and the cost of disposal at P250,000. What amount should be reported as revaluation surplus on December 31, 2021? a. 600,000 b. 400,000 c. 200,000 d. 300,000
Abba Company accounted for noncurrent assets using the revaluation model. On June 30, 2021, the entity classified a land as held for sale. At that date, the carrying amount was P2,900,000 and the balance of the revaluation surplus was P200,000. On June 30, 2021, the fair value was estimated at P3,300,000 and the cost of disposal at P200,000. On December 31, 2021, the fair value was estimated at P3,250,000 and the cost of disposal at P250,000. What total amount should be reported as impairment loss for 2021?
Happy Inc. accounted for noncurrent assets using the revaluation surplus model. On October 1, 2021, the entity classified a land as held for sale. At that date, the carrying amount of the land was P5,000,000 and the balance in the revaluation surplus was P1,500,000. At same date, the fair value of the land was estimated at P5,500,000 and the cost of disposal at P100,000. On December 31, 2021, the fair value less cost of disposal of the land did not change. The land was sold on January 31, 2022 for P6,000,000. What amount of OCI is reclassified to retained earnings in 2022? A. 1,500,000B. 2,000,000C. 500,000D. 0
Happy Inc. accounted for noncurrent assets using the revaluation surplus model. On October 1, 2021, the entity classified a land as held for sale. At that date, the carrying amount of the land was P5,000,000 and the balance in the revaluation surplus was P1,500,000. At same date, the fair value of the land was estimated at P5,500,000 and the cost of disposal at P100,000. On December 31, 2021, the fair value less cost of disposal of the land did not change. The land was sold on January 31, 2022 for P6,000,000. What is the adjusted carrying amount of the land on December 31, 2021? A. 5,400,000B. 5,300,000C. 5,200,000D. 3,500,000
Happy Inc. accounted for noncurrent assets using the revaluation surplus model. On October 1, 2021, the entity classified a land as held for sale. At that date, the carrying amount of the land was P5,000,000 and the balance in the revaluation surplus was P1,500,000. At same date, the fair value of the land was estimated at P5,500,000 and the cost of disposal at P100,000. On December 31, 2021, the fair value less cost of disposal of the land did not change. The land was sold on January 31, 2022 for P6,000,000. Was is the impairment loss in 2021? A. 400,000B. 100,000C. 500,000D. 0
Abba Company accounted for noncurrent assets using the revakuation model. On June 30,2021, the entity classified a land as held for sale. At that date, the carrying amount was P2,900,000 and the balance of the revaluation surplus was P200,000. On December 31,2021, the fair value was estimated at P3,250,000 and the cost of disposal at P250,000. REQUIRED: 1. What is the adjusted carrying amount of the land on June 30,2021? a. 3,100,000 b. 3,300,000 c. 2,900,000 d. 2,700,000 2. What is the adjusted carrying amount of the land on December 31, 2021? a. 3,100,000 b.3,300,000 c. 3,000,000 d. 3,250,000
Abba Company accounted for noncurrent assets using the revakuation model. On June 30,2021, the entity classified a land as held for sale. At that date, the carrying amount was P2,900,000 and the balance of the revaluation surplus was P200,000. On December 31,2021, the fair value was estimated at P3,250,000 and the cost of disposal at P250,000. Required: 1. What amount should be reported as revaluation surplus on December 31, 2021? a. 600,000 b. 400,000 c. 200,000 d. 300,000
Surreal Company accounted for non-current assets using the revaluation model. On October 1, 2021, the entity classified a land as held for sale. At that date, the carrying amount of the land was P5,000,000 and the balance in the revaluation surplus was P1,500,000. At same date, the fair value of the land was estimated at P5,500,000 and the cost of disposal at P100,000. On December 31,2021, the fair value less cost of disposal of the land did not change. The land was sold on January 31,2022 for P6,000,000. Required: 1. What is the adjusted carrying amount of the land on December 31,2021? a. 5,000,000 b. 5,500,000 c. 5,400,000 d. 3,500,000 2. What amount should be reported as impairment loss for 2021? a. 100,000 b. 400,000 c. 500,000 d. 0 3. What amount should be reported as revaluation surplus on December 31,2021? a. 1,500,000 b. 2,000,000 c. 1,000,000 d. 1,900,000 4. What amount should be reported as gain on disposal of land in 2022? a. 1,000,000 b. 2,600,000 c. 500,000 c. 600,000
Surreal Company accounted for non-current assets using the revaluation model. On October 1, 2021, the entity classified a land as held for sale. At that date, the carrying amount of the land was P5,000,000 and the balance in the revaluation surplus was P1,500,000. At same date, the fair value of the land was estimated at P5,500,000 and the cost of disposal at P100,000. On December 31,2021, the fair value less cost of disposal of the land did not change. The land was sold on January 31,2022 for P6,000,000. Required: 1. What amount should be reported as impairment loss for 2021? a. 100,000 b. 400,000 c. 500,000 d. 0 2. What amount should be reported as revaluation surplus on December 31,2021? a. 1,500,000 b. 2,000,000 c. 1,000,000 d. 1,900,000
Surreal Company accounted for non-current assets using the revaluation model. On October 1, 2021, the entity classified a land as held for sale. At that date, the carrying amount of the land was P5,000,000 and the balance in the revaluation surplus was P1,500,000. At same date, the fair value of the land was estimated at P5,500,000 and the cost of disposal at P100,000. On December 31,2021, the fair value less cost of disposal of the land did not change. The land was sold on January 31,2022 for P6,000,000. REQUIRED: 1. What amount should be reported as gain on disposal of land in 2022? a. 1,000,000 b. 2,600,000 c. 500,000 d. 600,000
Surreal Company accounted for non-current assets using the revaluation model. On October 1, 2021, the entity classified a land as held for sale. At that date, the carrying amount of the land was P5,000,000 and the balance in the revaluation surplus was P1,500,000. At same date, the fair value of the land was estimated at P5,500,000 and the cost of disposal at P100,000. On December 31,2021, the fair value less cost of disposal of the land did not change. The land was sold on January 31,2022 for P6,000,000. Required: 1. What is the adjusted carrying amount of the land on December 31,2021? a. 5,000,000 b. 5,500,000 c. 5,400,000 d. 3,500,000
Positivity Enterprises accounted for noncurrent assets using the revaluation model. On September 1, 2021, the entity classified as land held for sale. At that date, the carrying amount of the land was P4,000,000 and the balance in the revaluation surplus was P600,000. At the same date, the fair value of the land was estimated at P 4,100,000 and the cost of disposal at P100,000. On December 31, 2021, the fair value less cost of disposal of the land did not change. The land was sold on December 31, 2021 for P4,200,000. What is the amount of revaluation surplus on December 31, 2021?