On January 1, 20x1, XYZ G Co. acquired a building for ₱4,000,000. The asset is depreciated using the straight line method over an estimated useful life of 10 years. On January 1, 20x6, the building was estimated to have a recoverable amount of ₱1,600,000. Consequently, impairment loss was recognized on that date. There was no change in the estimated useful life. On January 1, 20x9, the building was estimated to have a new recoverable amount of ₱2,400,000 and a remaining useful life of 3 years. THE BUILDING IS MEASURED UNDER THE COST MODEL. A. How much of the impairment reversal is recognized in profit or loss? B. How much of the impairment reversal is recognized in equity?

On January 1, 20x1, XYZ G Co. acquired a building for ₱4,000,000. The asset is depreciated using the straight line method over an estimated useful life of 10 years. On January 1, 20x6, the building was estimated to have a recoverable amount of ₱1,600,000. Consequently, impairment loss was recognized on that date. There was no change in the estimated useful life. On January 1, 20x9, the building was estimated to have a new recoverable amount of ₱2,400,000 and a remaining useful life of 3 years. THE BUILDING IS MEASURED UNDER THE COST MODEL. A. How much of the impairment reversal is recognized in profit or loss? B. How much of the impairment reversal is recognized in equity?

Name: On January 1, 20x1, XYZ G Co. acquired a building for ₱4,000,000. The
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Description: On January 1, 20x1, XYZ G Co. acquired a building for ₱4,000,000. The asset is depreciated using the straight line method over an estimated useful life of 10 years. On January 1, 20x6, the building was estimated to have a recoverable amount of ₱1,600

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 2RE: Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual...

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On January 1, 2011, ECLAR Co. acquired a building for ₱4,000,000. The asset is depreciated using the straight line method over an estimated useful life of 10 years.  On January 1, 2016, the building was estimated to have a recoverable amount of ₱1,600,000. Consequently, impairment loss was recognized on that date. There was no change in the estimated useful life.  On January 1, 2019, the building was estimated to have a new recoverable amount of ₱2,400,000 and a remaining useful life of 3 years. The building is measured under the revaluation model. How much of the impairment reversal is recognized in profit or loss?
On January 1, 20x1, FALLACIOUS MISLEADING Co. acquired a building for ₱4,000,000. The asset is depreciated using the straight line method over an estimated useful life of 10 years. On January 1, 20x6, the building was estimated to have a recoverable amount of ₱1,600,000. Consequently, impairment loss was recognized on that date. There was no change in the estimated useful life. On January 1, 20x9, the building was estimated to have a new recoverable amount of ₱2,400,000 and a remaining useful life of 3 years. The building is measured under the revaluation model. How much of the impairment reversal is recognized in profit or loss? a. 160,000 b. 1,760,000 c. 1,600,000 d. 0 2. How much of the impairment reversal is recognized in equity? a. 160,000 b. 1,760,000 c. 1,600,000 d. 0
On January 1, 20x1, FALLACIOUS MISLEADING Co. acquired a building for ₱4,000,000. The asset is depreciated using the straight line method over an estimated useful life of 10 years. On January 1, 20x6, the building was estimated to have a recoverable amount of ₱1,600,000. Consequently, impairment loss was recognized on that date. There was no change in the estimated useful life. On January 1, 20x9, the building was estimated to have a new recoverable amount of ₱2,400,000 and a remaining useful life of 3 years. The building is measured under the revaluation model. How much of the impairment reversal is recognized in profit or loss? How much of the impairment reversal is recognized in equity?
On January 1, 20x1, FALLACIOUS MISLEADING Co. acquired a building for ₱4,000,000. The asset is depreciated using the straight line method over an estimated useful life of 10 years. On January 1, 20x6, the building was estimated to have a recoverable amount of ₱1,600,000. Consequently, impairment loss was recognized on that date. There was no change in the estimated useful life. On January 1, 20x9, the building was estimated to have a new recoverable amount of ₱2,400,000 and a remaining useful life of 3 years. The building is measured under the cost model. How much of the impairment reversal is recognized in profit or loss? How much of the impairment reversal is recognized in equity?
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