Chapter 11

Problem I
1.
Contributions of cash by the operators
Cash
KK Company
Cerise Company
Contribution by joint operators.

360,000
180,000
180,000

Use of cash and loan to buy machinery & equipment and raw materials
Machinery and equipment
96,000
Cash
60,000
Loans payable machinery and equipment
36,000
Contribution by joint operators.
Materials
Accounts payable
Acquisition of materials.
Labor incurrence
Payroll
Cash
Accrued payroll
Annual labor.
Loans from the bank
Cash
Bank loans payable
Amount borrowed.

78,000
78,000

86,400
84,000
2,400

72,000
72,000

Repayment of loan machinery and equipment and other factory expenses

Loan payable machinery and equipment
12,000
Cash
12,000
Partial payment of loan.
Accounts payable
Cash
Payment of trade creditors.
Factory overhead control heat, light and power
Cash
Payment of manufacturing expenses such as heat, light
and power.
Depreciation of machinery and equipment
Factory overhead control depreciation
Accumulated depreciation
Depreciation of equipment.

50,400
50,400
156,000
156,000

9,600
9,600

Transfer of materials, labor and overhead to Work-in-Process

Work-in-process
Payroll

309,600
86,400

Materials
Factory overhead control heat, light and power
Factory overhead control depreciation
Allocation of costs to work-in-process

57,600
156,000
9,600

Transfer of Work-in-Process to Finished Goods Inventory.

Finished goods
Work-in-process
Allocation to finished goods

216,000
216,000

Transfer of Finished Goods Inventory to Joint Operators throughout the year

KK Company
96,000
DD Company
96,000
Finished goods
192,000
Delivery of output to joint operators.
2.
Cash
Contribution Drei
Work-in-Process
180,000
Labor
Contribution Cerise
86,400
180,000
Materials
Bank loan
57,600
60,000
Factory Overhead heat, etc.
156,000
Factory
Overhead
depreciation
Balance,
12/31/x4
9,600
57,600
Balance, 12/31/x4
93,600
Total assets, P282,000
b. KKs investment, P84,000
c. DDs investment, P84,000
December 31, 20x4
Assets
Current Assets
Cash
Finished goods inventory
Work-in-Process inventory
Materials inventory
Total current assets
Non-current Assets
Equipment
Less: Accumulated depreciation
Total Assets

60,000

Machinery and equipment

3.
a.

216,000
to Finished Goods
84,000
Labor
12,000

Machinery and equipment

50,400 Accounts payable

156,000 Factory overhead control

Liabilities and Net Assets

Current Liabilities
Accrued payroll
Accounts payable
Non-current Liabilities
Bank loan payable
Loan payable machinery and equipment
Total Liabilities

P 57,600
24,000
93,600
20,400
P 96,000
9,600

2,400
27,600

P 60,000
24,000

P 195,600
86,400
P282,000

P 30,000
__84,000
P 114,000

Net Assets
Total Liabilities and Net Assets
Joint Operators Equity
KK Company: Contributions January 1, 20x4
Cost of inventory distributed
DD Company: Contributions January 1, 20x4
Cost of inventory distributed
Total Joint Operators Equity

168,000
P282,000
P 180,000
( 96,000)
P 180,000
( 96,000)

P 84,000
P 84,000
P168,000

Problem II
1. Ayala Corp. shall account for its interest in the joint operation as follows:
Current assets (50% x P720,000)
Property, plant and equipment (60% x P1,200,000)
Expenses (60% x 720,000)
Liabilities (75% x P960,000)
Revenue (55% x P1,200,000)
Interests in Joint Operation
To recognize the share of Entity A in the assets, liabilities,
revenues and expenses as follows:

360,000
720,000
432,000
720,000
660,000
132,000

2. The assets, liabilities, revenue and expenses are recognized and combined with those of
Ayalas own financial statements. The interest in joint operations at the end of the
reporting period is reduced to P228,000, computed as follows:
Interests in Joint Operation
Less: Share in assets, liabilities, revenues and expenses
Interest in operation, ending balance

P 360,000
132,000
P 228,000

Problem III
1. The joint operator, Entity A account for their interests in the joint operation as follows:
Entity Xin 20x4
Profit or loss (construction costs)
Cash/Accumulated depreciation/Trade payables
To recognize the construction costs incurred in 20x4

4,800,000

Cash
Profit or loss (construction revenue)
To recognize the construction costs incurred in 20x4

8,400,000

4,800,000

8,400,000

Entity Yin 20x4

Profit or loss (construction costs)
Cash/Accumulated depreciation/Trade payables
To recognize the construction costs incurred in 20x4

7,200,000

Cash
Profit or loss (construction revenue)
To recognize the construction costs incurred in 20x4

8,400,000

7,200,000

8,400,000

Problem IV
The joint operator, Entity K account for their interests in the joint operation as follows:

January 1, 20x4 (P12,000,000 / 5 = P2,400,000)

Property, plant and equipment (interest in an aircraft)
Cash
To recognize the purchase of an ownership-interest in a
jointly controlled aircraft.

2,400,000
2,400,000

In 20x4
Cash
Profit or loss (rental income)
To recognize income earned in renting to others the use
of the aircraft in 20x4.

12,000
12,000

Profit or loss (aircraft operating expenses)

Cash
To recognize the costs of running an aircraft in 20x4.

180,000

Profit or loss (depreciation expense)

Accumulated depreciation (interest in an aircraft
To recognize depreciation of an ownership-interest in a
jointly controlled aircraft in 20x4: P12,000,000/20 years
= P600,000/5 operators = P120,000
share for each joint operator.

120,000

180,000

120,000

Problem V
1. The following are the summaries of the above transactions for a joint operation in the
form of a partnership:
Event
a.
b.
c.
d.
e.

Investment in
Joint Operation
Dr.
Cr.
P 12,000
120,000

AA
Dr.

BB
Cr.
P12,000
120,000

Dr.

CC
Cr.

Dr.

Cr.
P
6,000

6,000
180,000

120,000
P588,000

P204,000
3,600

P60,000
P312,000
3,600

___3,000

________

________

______

P72,000
3,600
6,000
_______

10,800

f. *

________

6,000
___3,000

NI**

P318,000
_297,000
P597,000

P597,000
________
P597,000

P210,600
________
P210,600

P252,000
__112,200
P364,200

P315,600
________
P315,600

P 60,000
_147,000
P195,000

P81,600
_______
P81,600

_______
P
16,800
31,800
P48,600

_______
P597,000

________
P597,000

_153,600
P364,200

________
P364,200

________
P315,600

_120,600
P315,600

_______
P81,600

_33,000
P81,600

Cash**
*
Settlement
Totals

* purchases, P300,000; cost of goods sold, P294,000; ending inventory P6,000 x 50% =
P3,000.
**NI Net Income Allocation
Allowance for cleaning-up operations

AA

BB

CC
P
3,000

Total
P
3,000

Commission:
Aljon: 40% of P204,000

P81,600

Elerie: 40% of P312,000

Mac: 40% of P72,000

P124,80
0

81,600
28,800

10,20
30,600
0 _______
P112,2 P135,00 P31,80
Total
00
0
0
**Total credits of P597,000 Total debits of P318,000 = P279,000, net income.
Balance (75%: 25%)

124,800
28,800
40,80
0
P279,00
0

2. The cash settlement entry (refer to No. 1 for the computation of settlement) would be as
follows:
AA, capital
153,600
BB, capital
120,600
CC, capital
33,000
Therefore, BB will pay P120,600 and CC will pay, P33,000 to AA as final settlement for the
joint operations.
Problem VI
Schedule of Determination and Allocation of Excess
Date of Acquisition January 1, 20x4
Cost of investment
Consideration transferred
Less: Book value of stockholders equity of Son:
Common stock (P3,600,000 x 30%)
Retained earnings (P1,080,000 x 30%)
Allocated excess (excess of cost over book value)
Less: Over/under valuation of assets and liabilities:
Increase in inventory (P240,000 x 30%)
Increase in land (P960,000 x 30%)
Increase in building (P600,000 x 30%)
Decrease in equipment (P840,000 x 30%)
Increase in bonds payable (P120,000 x 30%)

P2,016,000
P 1,080,000
324,000
P
72,000
288,000
180,000
( 252,000)
( 360,000)

1,404,000
612,000

Positive excess: Goodwill (excess of cost over fair value)

252,000
P 360,000

The over/under valuation of assets and liabilities are summarized as follows:

Anton Co.
Anton Co.
(Over) Under
Book value
Fair value
Valuation
Inventories (sold in 20x4)
P1,200,000
P1,440,000
P 240,000
Land
1,080,000
2,040,000
960,000
Buildings net ( 10 year remaining life)
1,800,000
2,400,000
600,000
Equipment net ( 7 year remaining life)
1,440,000
600,000
( 840,000)
(1,320,000
Bonds payable (due January 1, 20x9)
( 1,200,000)
)
( 120,000)
Net
P4,320,000
P5,160,000
P 840,000
A summary or depreciation and amortization adjustments is as follows:
Over/
30%
Account Adjustments to be amortized
Under
thereof
Life
P
Inventories (sold in 20x4)
240,000 P 72,000
1
Land
960,000
288,000
-

Current
Year(20x4)
P 72,000
-

Buildings net ( 10 year remaining life)

Equipment net ( 7 year remaining life)
Bonds payable (due January 1, 20x9)
Net

600,000
( 840,000
)
( 120,00
0)
P
840,000

180,000
( 252,000
)
( 36,000
)
P 252,000

10

18,000

(36,000)

( 7,200)
P 46,800

The following are entries recorded by the parent in 20x4 in relation to its investment in joint
venture:
January 1, 20x4:
(1) Investment in DD Company
2,016,000
Cash
2,016,000
Acquired 30% joint control in DD Company.
January 1, 20x4 December 31, 20x4:
(2) Cash
Investment in DD Company (P720,000 x 30%)
Record dividends from DD Company.
December 31, 20x4:
(3) Investment in DD Company
Investment income (P1,440,000 x 30%)
Record share in net income of DD Company.
December 31, 20x4:
(4) Investment income
Investment in DD Company.
Record amortization of allocated excess of inventory,
equipment, buildings and bonds payable.

216,000
216,000

432,000

432,000

46,800
46,800

Thus, the investment balance and investment income in the books of TT Company is as
follows:
Investment in Joint Venture (DD Company)
Cost, 1/1/x4Income
216,000
Dividends Son (720,000x
Investment
2,016,000
80%)
Amortization
NI of Son
NI of Anton
46,800
Amortization
46,800
(1,440,000 x 30%)
432,000
(P1,440,000 x 30%)
432,000
385,200
Balance, 12/31/x4
Balance, 12/31/x4
2,185,200
To check the balance of Investment in Joint Venture (DD Company):
DD Companys Stockholders Equity, 12/31/20x4:
P3,600,00
Common stock
0
Retained earnings
P
Retained earnings,1/1/20x4
1,080,000
Net income 20x4
1,440,000
1,800,00
Dividends 20x4
( 720,000)
0
Book value of stockholders equity of DD
P5,400,00
Company,12/31/20x4
0
Multiplied by: Interest in Joint Venture
30%

P1,620,00
0

Book value of Interest in Joint Venture

Add: Unamortized allocated excess 30% thereof
P252,000 P46,800, amortization)
Goodwill
Investment in Joint Venture (DD Company) equity method
Multiple Choice Problems
1. a
Books of X
Inv. in JO
be:
6,500
2,500

4,000

6,500

X, capital

205,200
360,00
0
P2,185,20
0

Journal entry for settlement should

Z, capital..

2,500

X, capital

2,500

Y, capital

4,000
Books of Y
Inv. in JO
2,500
4,000

6,500

Books of Z
Inv. in JO
2,500
4,000

Y. capital
4,000

Z, capital
6,500

6,500
2.

Total credits - Investment in Joint OperationsP 25,810

Total debits - Investment in Joint Operations. 19,750
Net income or total gain (credit balance).P 6,060

3. d
Jose, capital
8,500 investment
1,212 share in net income (P6,060 x
2/10)
9,712
4. a The 20,000 shares should be valued at market value, thus, P800,000 (20,000 shares
x P40 per share)
5. b
20,000 shares at P40/share

Jose, capital
P 198,000 (4,500 x P44) Sales

P800,000
Expenses
3,000

125,000 (5,000 x P25)

13,600* (13,600 x P1) - Cash dividend
4,700
P807,700
P

Joint operation loss

37,100

168,000 (6,000 x P28) - Sales

266,000 (7,600 x P35)
P 770,600

*
9/30 Shares issued (6,000 + 10,000 + 4,000)
10/20 Sold
11/ 1 Stock dividend (20,000 4,500) x 20%
11/15 Sold
Balance of shares outstanding before cash dividend

20,000
(4,500)
3,100
(5,000)
13,600

Therefore, Roxas share would be P11,130 (P37,100 x 6,000/20,000 shares)

6. c

Investment in Joint Operations

P400,000 Investment (10,000 shares x
P40)

Share in net loss

P37,100 x (10,000/20,000)
P18,550

P381,450
7. b

Unrealized loss due to decline in the value of shares at the time of

investment
(P62 P40) x 4,000 shares
Share in joint operation (P37,100 x 4/20)
Reduction of loss by cash dividend (P13,600 x 4/20)

P68,000
__7,420
P98,140

8. a
before net income or loss

Investment in Joint Operations

15,000
25,000 ending inventory
10,000 net income

9. a (A- P10,000 x 50% = P5,000; B P10,000 x 30% = P3,000; C P10,000 x 20%)

10. a
Purchases
Contr/Invest
Profit(50%)
Expenses

to Alas

Joint Operations
20,000
77,000 Sales (?)
20,000

Anson, Capital
Unsold merchandise 600 20,000
18,600

800
1,800
42,600

600
77,000
34,400 (P16,000+
P18,400)
2,800 (P600 + P2,200)

38,600
38,000

Unsold merchandise
37,200 Net profit
11. c refer to No. 10 computation.
12. a
Investment in Joint Operations

Purchases
10,000

7,200 sales

Freight-in
240

5,120 unsold

Freight-out
260

10,000 Contribution/Invest

910 Share in NI

(P10,000 + P240) x

1/2

10,

500

Santo, capital

12,320

10,910

1,820

13. a refer to No. 12 for computation

14. c

Investment in Joint Operations

3,500 Sales

before sale
6,500
Net loss
3,000

N, capital

100

1,

14,500

13,400

Distribution of Loss:

O, capital

100

1,

6,500

5,400

Salary

15.

Balance, equally

300

Total

300

(1,100)

(1,100)

(1,100)

(3,300)

P ( 900)

P(1,100)

P(1,100)

P(3,000)

refer to No. 14 for computation

16. a
Investment in Joint Operations
48,700 Sales

Purchases
45,000

16,800

18,000
Interest expense
80

40 Dividend
100

50
6

65,640

3,130
2,510 Net income
2,510

McKee, capital

00

48,7

45,000

Nelson, capital

800

16,

80
40

50
100

1,225 share in NI

1,225 share in NI

2,40

17. a refer to No 16 for computation

Nelson, capital
McKee

18. b

18,000

2,405

2,405

2,405

Investment in Joint Operations

800 sales

Purchases
950
Expenses
150

600
1,400
1,100
300 Net income

Bar, capital

Car, capital

950
800

150
600

270

30

1,220

180

800

600

420 due to

420

Due

from

The entry for the settlement would be as follows (Car will pay Bar P420):
Bar, capital
420
Car, capital
420
Distribution of net income
Bar

Car

Total

Commission on net purchases:

20% x P950

P190

P190

200

200
150

Commission on sales:
25% x P800
25% x P600

Balance, equally

P150

(120)

(120)

(240)

P270

P 30

P300)

19. b refer to No. 18 for computations.

20. c
Investment in Joint Operations

Tan, capital

15,000 before P/L

10,500 unsold merchandise

Salary
12,000

Reyes

27,000

unsold
10,500

25,500 net income

merch.

10,

4,500 share in NI (1/3 x

P13,500)

31,500

500

13,500

21,000

21. b
Revenues
Total cash receipts (P78,920 + P65,245)
Less: Cash investments (P30,000 + P20,000)
Cash sales
Add: Proceeds from sale of remaining assets
Total Revenue
Less: Expenses (P62,275 + P70,695)
Net income

P144,345
50,000
P 94,345
60,000
P154,345
132,970
P 21,375

22. c
Benin, capital

Receipts
78,920

920

30,000 Contribution

78,

Sucat, capital

Receipts
65,425

20,000 Contribution

62,275 Disbursement

70,695 Disbursement

12,825 Share in NI (3/5)

8,550 Share in NI
(2/5)

105,100

26,180

425

65,

99,245

33,820

23. d
Ns books: it shows P5,000 receivable from P, and P3,000 payable to O; thus, N should
receive net cash of P2,000:
O, capital
3,000
Cash
2,000
P, capital
5,000
Os books: it shows P5,000 receivable from P, and P2,000 payable to N; thus, O should
receive net cash of P3,000:
N, capital
2,000
Cash
3,000
P, capital
5,000
Ps books: it shows P2,000 payable to N and P3,000 payable to O; thus, in final
settlement, P should pay a total of P5,000; P2,000 and P3,000 to N and O, respectively:
N, capital
2,000
O, capital
3,000
Cash
5,000
24.

The Investment in Basket Co. as of December 31 is as follows:

Acquisition cost, January 1, 2013
Add (deduct):
Share in net income (P90,000 x 40%]
36,000
Share in dividends (P30,000 x 40%)
Amortization of allocated excess
Investment balance on December 31

56,000
84,000

P 500,000

( 12,000)
( 16,400)
P 507,600

Cost of investment
P 500,000
Less: Book value of interest acquired [40% x (P1,400,000 P500,000)]
360,000
Allocated excess
P 140,000
Less: Over/undervaluation of assets and liabilities:
Increase in building (P140,000 x 40%)
Increase in trademark (P210,000 x 40)
Amortization of allocated excess:
Building: P56,000 / 7 years
Trademark: P84,000 / 10 years

8,000

8,400

25. b
The joint arrangement is a joint venture because it needs unanimous consent to all
parties involved. The parties recognize their rights to the net assets of Harrison Company
as investments and account for them using the equity method.
The Investment in Basket Co. as of December 31 is as follows:
Acquisition cost, January 1, 2013
Add (deduct):

P 500,000

Share in net income (P90,000 x 40%]

36,000

Share in dividends (P30,000 x 40%)

Amortization of allocated excess
Investment balance on December 31

( 12,000)
( 16,400)
P 507,600

Cost of investment
P 500,000
Less: Book value of interest acquired [40% x (P1,400,000 P500,000)]
360,000
Allocated excess
P 140,000
Less: Over/undervaluation of assets and liabilities:
Increase in building (P140,000 x 40%)
56,000

Increase in trademark (P210,000 x 40)

84,000

8,400

Amortization of allocated excess:

Building: P56,000 / 7 years
Trademark: P84,000 / 10 years
Total

26. b refer to No. 25 for further discussion.

The Income from Investment in Basket Co. on December 31 is as follows:
Share in net income (P90,000 x 40%]
36,000
Amortization of allocated excess
Income from Investment on December 31

8,000

P 16,400

P
( 16,400)
P 19,600

27. d
The joint arrangement is a joint venture because it needs unanimous consent to all
parties involved. The parties recognize their rights to the net assets of Harrison Company
as investments and account for them using the equity method.
The Investment in Goldman Co. as of December 31, 2015 is as follows:
Acquisition cost, January 1, 2013
Add (deduct):
Share in net income [(P140,000 x 3 years) x 40%]
Share in dividends [(P50,000 x 3 years) x 40%]
(60,000)
Amortization of allocated excess
Investment balance on December 31

P 600,000
168,000
(
0)
P 708,000

Cost of investment
Less: Book value of interest acquired (40% x P1,200,000)
Allocated excessP 120,000
Less: Over/undervaluation of assets and liabilities

P 600,000
480,000

Goodwill

P 120,000

There is no indication as to impairment of goodwill.

28. d
To determine whether a contractual arrangement gives parties control of an arrangement
collectively, it is necessary first to identify the relevant activities of that arrangement.
That is, what are the activities that significantly affect the returns of the arrangement?

When identifying the relevant activities, consideration should be given to the purpose
and design of the arrangement. In particular, consideration should be given to the risks
to which the joint arrangement was designed to be exposed, the risks the joint
arrangement was designed to pass on to the parties involved with the joint arrangement,
and whether the parties are exposed to some or all of those risks.
In many cases, directing the strategic operating and financial policies of the
arrangement will be the activity that most significantly affects returns. Often, the
arrangement requires the parties to agree on both of these policies. However, in some
cases, unanimous consent may be required to direct the operating policies, but not the
financial policies (or vice versa). In such cases, since the activities are directed by
different parties, the parties would need to assess which of those two activities
(operating or financing) most significantly affects returns, and whether there is joint
control over that activity. This would be the case whenever there is more than one
activity that significantly affects returns of the arrangements, and those activities are
directed by different parties.
Based on the ownership structure, even though Wallace can block any decision, Wallace
does not control the arrangement, because Wallace needs Zimmerman to agree
therefore joint control between Wallace and Zimmerman (since their votes and only their
votes, together meet the requirement). Because they are the only combination of parties
that collectively control the arrangement, it is clear that Wallace and Zimmerman must
unanimously agree.
The appropriate method for the joint venture is the equity method. The Income from
Investment in Gold Co. on December 31, 2015 is as follows:
Share in net income (P140,000 x 40%)
P
56,000
Amortization of allocated excess
(
0)
Income from Investment on December 31, 2015
P 56,000
29. d
No joint control multiple combinations of parties could be used to reach agreement
and collectively control the arrangement (i.e., Wallace and Zimmerman or Wallace and
American could vote together to meet the requirement). Since there are multiple
combinations, and the contractual agreement does not specify which parties must agree,
there is no unanimous consent.
It should be noted that since there is no joint control as indicated per problem and the
presence of 50% ownership holding is presumed to give significant influence of Wallace
over Goldman, unless it can be clearly demonstrated that this is not the case. Therefore,
Goldman Company is considered as an associate instead of a joint venture.
The appropriate method for Investment in Associates is the equity method. The Income
from Investment in Gold Co. on December 31, 2015 is as follows:
Share in net income (P140,000 x 40%)
P
56,000
Amortization of allocated excess
(
0)
Income from Investment on December 31, 2015
P 56,000
30. d
No joint control multiple combinations could be used to reach agreement.

It should be noted that since there is no joint control as indicated per problem and the
presence of 35% ownership holding is presumed to give significant influence of Wallace
over Goldman, unless it can be clearly demonstrated that this is not the case. Therefore,
Goldman Company is considered as an associate instead of a joint venture.
The appropriate method for Investment in Associates is the equity method. The Income
from Investment in Gold Co. on December 31, 2015 is as follows:
Share in net income (P140,000 x 40%)
P
56,000
Amortization of allocated excess
(
0)
Income from Investment on December 31, 2015
P 56,000
31. a downstream transaction (refer also to consolidation for corollary analysis)
Gross Profit Markup: P36,000/P90,000 =
40%
Inventory Remaining at Year-End
P20,000
x: Markup
40%
Unrealized profit in ending inventory
P 8,000
x: Ownership
30%
Intercompany Unrealized profit in ending
inventory
P 2,400
Multiple Choice Problems SME for Joint Ventures
1. a
2. a
3. a
4. a
5. c
6. a
7. a
8. a
9. c
10. a
11. a
12. c
13. a
14. a
15. b
16. c
Cost of investment in entity Z:
Purchase price..
P
28,000
Add:
Transaction
costs
(1%
x
P28,000)
280
Costs.
P
28,280
Less: Fair value on December 31, 20x4................................P 15,000
Less: Costs to sell (5% x P15,000)..
750
14,250
Impairment loss..
P
14,030

17. d
No entry required only the decrease or increase in fair value is recognized to profit
and loss.

18. a
Cost of investment in entity Z:
Purchase price..
28,000

5,000

Add:
Transaction
costs
(1%
x
P28,000)
280
Initial costs..
P
28,280
Less: SME As share of entity Zs loss for the year (25% x P20,000)......

Costs
of
investment,
December
31,
20x4.
P23,280
Less: Fair value on December 31, 20x4.................................P 15,000
Less: Costs to sell (5% x P15,000)..
750
14,250
Impairment loss..
P
9,030

19. b
Cost of investment in entity Z. ..P
28,000
Less: Fair value on December 31, 20x4.....................................................
15,000
Decrease in fair value on December 31, 20x4P
13,000

20. a

Entity X:

Cost of investment in entity X. P

10,000
Less: Fair value on December 31, 20x4...............................................
13,000
Increase in fair value on December 31, 20x4 P
13,000

Entity Y:
Cost of investment in entity Y. P
15,000
Less: Fair value on December 31, 20x4...............................................
29,000
Increase in fair value on December 31, 20x4 P
14,000

21. d refer to paragraphs PFRSs for SMEs paragraphs 15.10 and 15.11
20x4: P101,000 because recoverable amount fair value less costs to sell of
P98,000 is less than the cost of P101,000.
20x5: P101,000 because it is less than recoverable amount.
20x6: P86,000 because recoverable amount of P86,000 is less than cost of
P101,000.

22. e PFRSs for SMEs paragraphs 15.12, 15.14 and 15.15