ABC Company h

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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6.ABC Company has determined that its electronic division is a cash generating unit. The company calculated the value in use of the division to be P8,000,000. The carrying amounts of the assets are as follows:

Building
5,000,000
Equipment
3,000,000
Inventory
2,000,000
10,000,000
ABC Company has also determined that the fair value less cost
to sell of the building is P4,500,000. What is the impairment loss
to be allocated to the equipment?
Transcribed Image Text:Building 5,000,000 Equipment 3,000,000 Inventory 2,000,000 10,000,000 ABC Company has also determined that the fair value less cost to sell of the building is P4,500,000. What is the impairment loss to be allocated to the equipment?
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