On January 1, 2020, Racelle Company purchased land at a cost of P6,000,000. The entity used the REVALUATION MODEL for this asset.

The fair value of the land was P7,000,000 on Dec. 31, 2020 and P8,500,000 on Dec 31, 2021.

On July 1, 2022, the entity decided to sell the land and therefore classified the asset as held for sale.

The fair value of the land on July 1, 2022 is P7,600,000. The estimated cost of disposal is very minimal.

On Dec. 31, 2022, the land was sold for P8,000,000.

 

Questions:

1. What amount in OCI should be recognized in the statement of comprehensive income for the year ended Dec. 31, 2021? 
2. What amount of gain or loss on sale of land is recognized in 2022? 
3. What amount of OCI is recycled to retained earnings in 2022?

Answer rating: 100% (QA)

In January 1 2020 the purchase of land is P6 000000 In December 31 2020 the fair value of the land i... View the full answer