ABC Company had purchased equipment for P10,000,000, on January 1, 20X1. The equipment had a 5-year life and a salvage value of 10%. ABC Company depreciated the equipment using the straight-line method. On December 31, 20X3, ABC had doubts on the recoverability of the carrying amount of this equipment. On December 31, 20X3, the undiscounted expected net future cash inflows related to the continued use and eventual disposal of the equipment totaled P5,000,000. The equipment’s fair value on December 31, 20X3 is P4,500,000. After any loss on impairment has been recognized, what is the carrying amount of the equipment?

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Q: i just want to know the answer

A:

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