On January 1, 2013, Laity Company purchased a patent with a cost of P5,200,000 and a useful life of ten years. On December 31, 2014, the entity determined that impairment indicators were present. The fair value less cost of disposal of the patent was estimated to be P3,600,000. The, value in use is estimated to be P3,800,000. What amount should be reported as impairment loss for 2014?

On January 1, 2013, Laity Company purchased a patent with a cost of P5,200,000 and a useful life of ten years. On December 31, 2014, the entity determined that impairment indicators were present. The fair value less cost of disposal of the patent was estimated to be P3,600,000. The, value in use is estimated to be P3,800,000. What amount should be reported as impairment loss for 2014?

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Description: On January 1, 2013, Laity Company purchased a patent with a cost of P5,200,000 and a useful life of ten years. On December 31, 2014, the entitydetermined that impairment indicators were present'. The fair value less cost of disposal of the patent wa

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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