On January 1, 20x1, an entity transfers a piece of equipment with historical cost of P1,800,000, accumulated
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Question:
On January 1, 20x1, an entity transfers a piece of equipment with historical cost of P1,800,000, accumulated depreciation of P900,000 and fair value of P850,000 as full settlement of a note payable with a carrying amount of P1,000,000. How much is the gain or loss on the derecognition of the note?
Equity swap
On January 1, 20x1, an entity issues 10,000 of its own shares, with par value per share of P10 and fair value per share of P75 as full settlement of a note payable with a carrying amount of P600,000. How much is the gain or loss on the derecognition of the note?
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