Suns incorporated classified their buildings as held for sale on june 1, 2020. on this date, the
Question:
Suns incorporated classified their buildings as held for sale on june 1, 2020. on this date, the carrying value of the building is 5,500,000 while its related accumulated depreciation s 2,000,000. Its fair value less cost to sell of 100,000 was 4,500,000.
On December 31 2020, the fair value less cost to sell of the building was 4,200,000.
On December 31 2021, the building is still unsold but the criteria for classification as held for sale is still met. Its fair value less cost to sell on this date was 4,600,000.
On May 15 2022, the building was sold for 4,650,000.
Required
Determine the amount of impairment loss recognized on date of reclassification the gain/(losses) on sale to be recognized in 2022 shall be
On May 15 2021, the plan to sell the building was abandoned. On this date, its fair value less cost of disposal is 4,200,000. Non current assets are depreciated over a 10-year useful life without salvage value using the straight-line method. By what amount shall the building be carried in the books of the company after it ceases to be recognized as held for sale?
Pearsons Federal Taxation 2023 Comprehensive
ISBN: 9780137840656
36th Edition
Authors: Timothy J. Rupert, Kenneth E. Anderson, David S Hulse