On January 1, 2006, LUOGI Company owned a machine having a carrying amount of P240,000. The machine was purchased four years earlier for P400,000. LUOGI uses straight-line depreciation. During December 2006 LUOGI determined that the machine suffered permanent impairment of its operational value and will not be economically useful in its production process after December 31, 2006. On January 5, 2007 LUOGI sold the machine for P70,000 at fair value as December 31, 2006 incurring a disposal cost of P5,000. In its income statement for the year ended December 31, 2006, LUOGI should recognize a loss of 135,000 O200,000 175,000

On January 1, 2006, LUOGI Company owned a machine having a carrying amount of P240,000. The machine was purchased four years earlier for P400,000. LUOGI uses straight-line depreciation. During December 2006 LUOGI determined that the machine suffered permanent impairment of its operational value and will not be economically useful in its production process after December 31, 2006. On January 5, 2007 LUOGI sold the machine for P70,000 at fair value as December 31, 2006 incurring a disposal cost of P5,000. In its income statement for the year ended December 31, 2006, LUOGI should recognize a loss of 135,000 O200,000 175,000

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Description: On January 1, 2006, LUOGI Company owned a machine having a carrying amount of P240,000. The machinewas purchased four years earlier for P400,000. LUOGI uses straight-line depreciation. During December2006 LUOGI determined that the machine suffered p

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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