How is the building classified

Assignment Help Accounting Basics
Reference no: EM132627894

On January 2, 2015, Lima Company committed a plan to sell its other building and classified this asset as held for sale. The carrying value of the building as of January 2, 2015 is P5M. Lima Company priced the building at P5.5M, which is equal to its fair market value.

During 2015, the market conditions that existed at the date the building was classified initially as held for sale deteriorate and as a result, the asset is not sold at the end of 2015. During 2015, the company actively solicited but did not receive any reasonable offers to purchase the building and, in response, reduced the price to P4.8M.

Question 1: The building continues to be actively marketed at a price that is reasonable given the change in market conditions. In Lima's balance sheet at December 31, 2015, how is the building classified and at what amount should it be measured?

Reference no: EM132627894

Questions Cloud

Describe subdomains of health and biomedical informatics : Chapter 1 of the textbook reviews the evolution of health informatics. Figure 1-5 on page 15 visually shows the relationships between various subdomains.
What ben company should classify the building as : What Ben Company should classify the building as. On January 2, 2015, Ben Company intends to sell its building with a carrying value of P3.8M
State loses data-mining case : Review the article, "State Loses Data-Mining Case," linked in the Resources. Present at least two perspectives on the following question:
What is the underlying ethical issue : Mr Black was allocated a large expense account in his role as a senior executive of Choice Pty Ltd. What is the underlying ethical issue
How is the building classified : On January 2, 2015, Lima Company committed a plan to sell its other building, How is the building classified and at what amount should be measured?
Discuss a ban violates john constitutional rights : John Public lives in a housing complex in Portland that is run by the City of Portland and subsidized by money from the federal government.
Prepare the entry to record the trade : Prepare the entry to record the trade in generally accepted accounting principles. Accumulated depreciation 1,050,000. Original cost 1,200,000
How highlight any sentence and provide comment : Conservative bias in the recognition, How Highlight any sentence and provide comment why you agree or disagree with the statement?
Calculate carla annual maximum canada pension plan : Carla works for Allied Transport in Alberta and is paid $4,717.42, Calculate Carla's annual maximum Canada Pension Plan contribution for 2020.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd