Breathless Company acquired equipment on January 1, 2018 for P5,000,000. The equipment had a 10-yearuseful life and no residual value. On December 31, 2019, the following information was obtained:Expected value of undiscounted cash flowsFair value estimated with in-use premise3,600,0003,700,000Fair value estimated with in-exchange premise3,500,0006. What amount should be recognized as impairment loss for 2019?a. 300,000b. 400,000c. 500,000d.Silver Company operates a production line which is treated as a cash generating unit for impairment reviewpurposes. At year-end, the carrying amounts of the noncurrent assets are as follows:Goodwill1,100,000Machinery2,200,000The value in use of the production line is estimated at P2,700,000 at this time.7. What is the revised carrying amount of goodwill after recognition of impairment?a. 1,100,000b.900,000c.800,000d.500,0008. What is the revised carrying amount of machinery after recognition of impairment?a. 2,200,000b. 1,800,000. 1,600,000d. 1,900,000

Name: Breathless Company acquired equipment on January 1, 2018 for P5,000,0
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Description: Breathless Company acquired equipment on January 1, 2018 for P5,000,000. The equipment had a 10-yearuseful life and no residual value. On December 31, 2019, the following information was obtained:Expected value of undiscounted cash flowsFair value e

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Breathless Company acquired equipment on January 1, 2018 for P5,000,000. The equipment had a 10-year useful life and no residual value. On December 31, 2019, the following information was obtained: Expected value of undiscounted cash flows 3,600,000 Fair value estimated with in-use premise 3,700,000 Fair value estimated with in-exchange premise 3,500,000 6. What amount should be recognized as impairment loss for 2019? a. 300,000 b. 400,000 c. 500,000 d.

Breathless Company acquired equipment on January 1, 2018 for P5,000,000. The equipment had a 10-year useful life and no residual value. On December 31, 2019, the following information was obtained: Expected value of undiscounted cash flows 3,600,000 Fair value estimated with in-use premise 3,700,000 Fair value estimated with in-exchange premise 3,500,000 6. What amount should be recognized as impairment loss for 2019? a. 300,000 b. 400,000 c. 500,000 d.

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

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 7RE: Bliss Company owns an asset with an estimated life of 15 years and an estimated residual value of...

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