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One of MIME IMMITATE Co.’s machines has been impaired. Repairs and maintenance costs on the machine have been increasing over the past years making the machine a bottleneck in MIME’s production. At year-end, management made a decision to sell the machine very soon. Information on the machine is shown below: Carrying amount ₱400,000 Fair value less costs of disposal 200,000 Value in use 240,000 How much is the impairment loss? a. 0 b. 160,000 c. 40,000 d. 200,000

One of MIME IMMITATE Co.’s machines has been impaired. Repairs and maintenance costs on the machine have been increasing over the past years making the machine a bottleneck in MIME’s production. At year-end, management made a decision to sell the machine very soon. Information on the machine is shown below: Carrying amount ₱400,000 Fair value less costs of disposal 200,000 Value in use 240,000 How much is the impairment loss? a. 0 b. 160,000 c. 40,000 d. 200,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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One of MIME IMMITATE Co.’s machines has been impaired. Repairs and maintenance costs on the machine have been increasing over the past years making the machine a bottleneck in MIME’s production. At year-end, management made a decision to sell the machine very soon. Information on the machine is shown below: Carrying amount ₱400,000 Fair value less costs of disposal 200,000 Value in use 240,000 How much is the impairment loss? a. 0 b. 160,000 c. 40,000 d. 200,000
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