Nona Co. purchased land worth P20,000,000 on January 1, 2021. The company uses the revaluation model in accounting for its PPE. On December 31, 2021, an independent appraiser valued the land at P43,000,000. But on December 31, 2022, the land had a fair value of P8,000,000. How much revaluation deficit/impairment loss should be recognized in the income statement on December 31, 2022? (No need to put +" or *, just place absolute value)
Nona Co. purchased land worth P20,000,000 on January 1, 2021. The company uses the revaluation model in accounting for its PPE. On December 31, 2021, an independent appraiser valued the land at P43,000,000. But on December 31, 2022, the land had a fair value of P8,000,000. How much revaluation deficit/impairment loss should be recognized in the income statement on December 31, 2022? (No need to put +" or *, just place absolute value)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 5MC: At the beginning of 2019, Conley Company purchased an asset at a cost of 10,000. For financial...
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![Nona Co. purchased land worth P20,000,000 on January 1, 2021. The company uses
the revaluation model in accounting for its PPE.
On December 31, 2021, an independent appraiser valued the land at P43,000,000.
But on December 31, 2022, the land had a fair value of P8,000,000.
How much revaluation deficit/impairment loss should be recognized in the income
statement on December 31, 2022? (No need to put "+" or "", just place absolute
value)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4ea0a062-25e1-4882-aef9-d0b551012b75%2Fc0099f59-a00c-43dc-96ad-63e6f6127963%2Fd880zv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Nona Co. purchased land worth P20,000,000 on January 1, 2021. The company uses
the revaluation model in accounting for its PPE.
On December 31, 2021, an independent appraiser valued the land at P43,000,000.
But on December 31, 2022, the land had a fair value of P8,000,000.
How much revaluation deficit/impairment loss should be recognized in the income
statement on December 31, 2022? (No need to put "+" or "", just place absolute
value)
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