Problem 38

Dana Company accounted for noncurrent assets using the cost model.
On October 1, 2019, the entity classified a noncurrent asset as for sale.

At that date, the carrying amount was P3,200,000, the fair value was estimated at P2,200,00 and
the cost of disposal at P200,000.

On December 31, 2019, the asset was sold for net proceeds of P1,850,000.

What amount be recognized as an impairment loss for 2019?

Problem 39

Arlene Company accounted for noncurrent using the cost model.

On October 30,2019. The entity classified a noncurrent asset as held for sale.

At that date, the carrying amount was P1,500,000, the fair value was estimated
at P1,100,000 and the cost of disposal at P150,000.

On December 31, 2019, the asset was sold for net proceeds of P800,000.

1. What amount should be reported as impairment loss for 2019?

2. What amount should be recognized as loss on disposal for 2019?

Problem 40

On September 30, 2019, when the carrying amount of the net assets of a business segment was
P70,000,000, Young company signed a legally binding contract to sell the business segment.

The sale is expected to be completed by January 31, 2020 at a sale price of P60,000,000.

In addition, prior to January 31, 2020, the sale contract obliged Young Company to terminate the
employment of certain employees of the business segment incurring an expected termination cost
of P5,000,000 to be paid on June 30, 2020.

The segment revenue and expenses for 2019 were P40,000,000 and P45,000,000 respectively.
The income tax rate is 30%.

What amount should be reported as loss from discontinued operation for 2019?