On December 31, 2020, MECH COMPAY'S only building has a carrying amount of P1,350,000. The net recoverable amount of the building at that date was P950,000.  The building still has a remaining life of 5 years.

The net recoverable amount of the building on December 31, 2021 and December 31, 2022 were P820,000 and P855,000 respectively

Impairment loss included in the profit or loss section of the 2020 comprehensive income statement ______________?
Gain on impairment reversals included in the profit or loss section of the 2021 comprehensive income statement  ______________?
Gain on impairment reversals included in the profit or loss section of the 2022 comprehensive income statement  ______________?
 
Problem:

DUSK COMPANY purchased a wood cutter on September 1, 2019 for P652,000. At the time of acquisition, the machine was estimated to have a useful life of 14 years and a residual value of P15,000. DUSK COMPANY has recorded depreciation under the straight-line method. On June 30, 2021, the wood cutter was sold for P520,000.

The gain (loss) on the sale of the wood cutter is ______________?

 Problem:

On July 1, 2019, AXS COMPANY acquired an asset for P1,312,500.  The asset is being depreciated over a 6-year period using the sum-of-the-years' digit method. It has a salvage value of P52,500. The asset was sold at the end of 2022 resulting in a gain of P120,000.

The selling price of the asset is ______________?

 Problem:

On September 1, 2021, one of AXIE COMPAY's delivery vans was destroyed in an accident. The carrying value of the truck was P125,000. On September 18, 2021. AXIE COMPANY received an invoice for a new engine installed in the truck in August 1, 2021 amounting to P65,000 and another receipt for various repairs made totaling to P 35,000.
The amount that AXIE COMPANY should report as gain in relation to the truck in its 2018 statement of profit or loss ______________?

 Problem:

On December 31, 2021, a machine owned by SLP COMPANY was destroyed by a fire. SLP COMPANY incurred removal and clean-up costs of P40,000. The machine had a book value of P450,000 and a fair value of P510,000 at the time of the fire. The machine was insured "new to old" and was replaced by the insurance company with a new one currently selling at P560,000.

The loss due to fire to be reported in the 2021 income statement is ______________?

Answer rating: 100% (QA)

1 On December 31 2020 Carrying amount of the building P1350000 Net recoverable amount of the building P950000 Impairment loss in 2020 Carrying amount Net recoverable amount Impairment loss in 2020 P13... View the full answer