Solution-What amount of gain or loss on reclassification

What amount of gain or loss on reclassification

Assignment Help Financial Accounting

Reference no: EM132812708

On January 1, 2019, Budma Company acquired machinery worth P6,000,000 with a 10-year useful life and no residual value. The entity elected to use the cost model. On December 31, 2020, Budma decided to sell the asset and classified it as held for sale. The fair value less cost of disposal on such date is P4,100,000. On December 31, 2021, Budma decided to classify the asset back into property, plant and equipment since there were no buyers for the asset. On this date, the fair value less cost of disposal is P3,700,000 and the value in use is P4,000,000.

Problem 1: What amount of impairment loss should be recognized for 2020? _____

Problem 2: What amount of gain or loss on reclassification should be recognized for 2021?

Reference no: EM132812708

Questions Cloud

What reading did you find most interesting and why : What other topics would you have liked to have covered in this course? What reading did you find most interesting and why? How has this course changed your.

Calculate the number of individual tickets : WET weekend swim park, Calculate the number of individual tickets and the number of family tickets the company must sell to break even.

Pros and cons associated with each waterfall and agile sdlc : Outlines the pros and cons associated with each waterfall and Agile SDLC and when to use each. Creates a graphic summary or chart comparing waterfall.

Important on information technology projects : Why do you think good project scope management is so important on information technology projects?

What amount of gain or loss on reclassification : What amount of gain or loss on reclassification should be recognized for 2021? What amount of impairment loss should be recognized for 2020?

What is the project NPV : Project L costs $65,000, its expected cash inflows are $12,000 per year for 9 years, and its WACC is 9%. What is the project's NPV

Five learning discipline of peter senge : Analyse and apply the FIVE learning discipline of Peter Senge to individual learning. (10 marks) 2. Analyse and apply the FIVE learning discipline of Peter Seng

Defining your recommendations concerning security : Consider the overall team project solution (hardware and software) relative to security. Create and submit a 3-4-page Word document defining your recommendation

Describe the uncontrolled risk associated : XYZ Limited is a clothing wholesaler that sells the name-brand clothing to department stores and boutique dress shops. Figure on Page No 4 describes the credit

User Account

All Pages

What amount of gain or loss on reclassification

Reference no: EM132812708

Reference no: EM132812708

Questions Cloud

Reviews

Write a Review

Financial Accounting Questions & Answers

Financial statement analysis and preparation

Shareholder of a company

Financial and accounting principles

Prepare a statement of cash flow using the direct method

Financial accounting assignment

Prepare general journal entries for goela

Principles of financial accounting

Prepare general journal entries to record the transactions

Global reporting initiative

Explain the iasb conceptual frameworks

Determine the company''s financial statements

Computation of free cash flow

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT