Hardflex Inc. bought a building for production of XYZ product on June 30, 2017 costing P15,000,000 with an estimated useful life of 10 years and salvage value of P2,000,000. On December 31, 2018, the entity decided to classify as held for sale. The fair value of the building on that date is P13,000,000 and the cost of disposal is P300,000. On December 31, 2019, the management of the company reassessed the use of the building and has decided to use it once again for production. The fair value and cost of disposal on this date is P12,500,000 and P200,000, respectively.

1. How much is the depreciation expense for 2019?

2. How much is the gain/loss reclassification?

Answer rating: 100% (QA)

Solution Purchase price of building on June 30 2017 P13000000 Depreciation On December 2017 Purchase ... View the full answer