HOW MUCH IS THE DEPRECIATION EXPENSE ON 2020? Question for Visayas Company: • Compute the Impairment Loss of CGU • Compute the Carrying amount of Machinery, AR, Patent and Goodwill after the Impairment
HOW MUCH IS THE DEPRECIATION EXPENSE ON 2020? Question for Visayas Company: • Compute the Impairment Loss of CGU • Compute the Carrying amount of Machinery, AR, Patent and Goodwill after the Impairment
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 2E: Depreciation Methods Sorter Company purchased equipment for 200,000 on January 2, 2019. The...
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Cherry Company Question:
• HOW MUCH IS THE DEPRECIATION EXPENSE ON 2020?
Question for Visayas Company:
• Compute the Impairment Loss of CGU
• Compute the Carrying amount of Machinery, AR, Patent and Goodwill after the Impairment
Transcribed Image Text:Visayas Company has a number of cash generating units,
including one whose major operation is the manufacture of
fine china.
The assets of the fine china division at carrying amount at
the current year-end are:
Machinery
Accounts receivable
Patent
Goodwill
5,000,000
3,000,000
1,000,000
1,000,000
The management of tested the cash generating unit for
impairment. It is reliably determined that the value in use
of the cash generating unit is P7,200,000.
Transcribed Image Text:Cherry Company acquired a building on January 1, 2017 at a
cost of P20,000,000. The building has an estimated useful life of
6 years and residual value of P2,000,000.
e of
The building was revalued on January 1, 2020 and the
revaluation revealed replacement cost of P30,000,000, residual
value of P4,000,000 and revised useful life of 8 years.
000
000
000
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