On January 1, 2014, Elite Company purchased equipment with a cost of P11,000,000, useful life of 10 years and no residual value. The entity used straight line depreciation. At every year-end, the entity determined that impairment indicators are present. There is no change in the useful life or residual value. The following information is available for impairment testing at each year end: 31-Dec-14 31-Dec-15 Fair Value less cost of disposal 8,100,000 8,400,000 Value in Use 8,550,000 8,200,000 What is the gain on reversal of impairment for 2015? a. PO b. P400,000 C. P800,000

On January 1, 2014, Elite Company purchased equipment with a cost of P11,000,000, useful life of 10 years and no residual value. The entity used straight line depreciation. At every year-end, the entity determined that impairment indicators are present. There is no change in the useful life or residual value. The following information is available for impairment testing at each year end: 31-Dec-14 31-Dec-15 Fair Value less cost of disposal 8,100,000 8,400,000 Value in Use 8,550,000 8,200,000 What is the gain on reversal of impairment for 2015? a. PO b. P400,000 C. P800,000

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Description: On January 1, 2014, Elite Company purchased equipment with a cost of P11,000,000, useful life of 10 years and no residualvalue. The entity used straight line depreciation. At every year-end, the entity determined that impairment indicators are prese

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter10: Long-lived Tangible And Intangible Assets

Section: Chapter Questions

Problem 22E

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