On January 1, 2006, LUOGI Company owned a machine having a carrying amount of P240,000. The machine was purchased four years earlier for P400,000. LUOGI uses straight-line depreciation. During December 2006 LUOGI determined that the machine suffered permanent impairment of its operational value and will not be economically useful in its production process after December 31, 2006. On January 5, 2007 LUOGI sold the machine for P70,000 at fair value as December 31, 2006 incurring a disposal cost of P5,000. In its income statement for the year ended December 31, 2006, LUOGI should recognize a loss of 135,000 O200,000 175,000

On January 1, 2006, LUOGI Company owned a machine having a carrying amount of P240,000. The machine was purchased four years earlier for P400,000. LUOGI uses straight-line depreciation. During December 2006 LUOGI determined that the machine suffered permanent impairment of its operational value and will not be economically useful in its production process after December 31, 2006. On January 5, 2007 LUOGI sold the machine for P70,000 at fair value as December 31, 2006 incurring a disposal cost of P5,000. In its income statement for the year ended December 31, 2006, LUOGI should recognize a loss of 135,000 O200,000 175,000

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Description: On January 1, 2006, LUOGI Company owned a machine having a carrying amount of P240,000. The machinewas purchased four years earlier for P400,000. LUOGI uses straight-line depreciation. During December2006 LUOGI determined that the machine suffered p

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 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...

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