UNO COMPANY purchased equipment for P5,000,000 on January 1, 2013 with a useful life of ten years and no residual value. On January 1, 2015, the entity classified the asset as held for sale. The fair value of the equipment of January 1, 2015 is P3,300,000 and the cost of disposal is P100,000. On December 31, 2015, the fair value of the equipment is P3,800,000 and the cost of disposal is P200,000. On December 31, 2015, the entity believed that the criteria for classification as held for sale can no longer be met. Accordingly, the entity decided not to sell the asset but to continue to use it. What is the measurement of the equipment that ceases as held for sale on December 31, 2015?
UNO COMPANY purchased equipment for P5,000,000 on January 1, 2013 with a useful life of ten years and no residual value. On January 1, 2015, the entity classified the asset as held for sale. The fair value of the equipment of January 1, 2015 is P3,300,000 and the cost of disposal is P100,000. On December 31, 2015, the fair value of the equipment is P3,800,000 and the cost of disposal is P200,000. On December 31, 2015, the entity believed that the criteria for classification as held for sale can no longer be met. Accordingly, the entity decided not to sell the asset but to continue to use it. What is the measurement of the equipment that ceases as held for sale on December 31, 2015?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...
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UNO COMPANY purchased equipment for P5,000,000 on January 1, 2013 with a useful life of ten years and no residual value. On January 1, 2015, the entity classified the asset as held for sale. The fair value of the equipment of January 1, 2015 is P3,300,000 and the cost of disposal is P100,000. On December 31, 2015, the fair value of the equipment is P3,800,000 and the cost of disposal is P200,000. On December 31, 2015, the entity believed that the criteria for classification as held for sale can no longer be met. Accordingly, the entity decided not to sell the asset but to continue to use it.
What is the measurement of the equipment that ceases as held for sale on December 31, 2015?
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