
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:6. At year-end, an entity had an equipment with cost of P9,000,000 and accumulated depreciation of
P3,000,000. Due to obsolescence and physical damage, the equipment was found to be impaired. On same
date, the entity determined that the equipment had a fair value less cost of disposal of P4,500,000,
discounted net cash inflows of P4,000,000 and undiscounted net cash inflows of P5,000,000. What
amount should be reported as impairment loss for the current year?
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