On January 1, 2006, LUOGI Company owned a machine having a carrying amount of P240,000. The machine waspurchased four years earlier for P400,000. LUOGI uses straight-line depreciation. During December 2006 LUOGIdetermined that the machine suffered permanent impairment of its operational value and will not be economicallyuseful in its production process after December 31, 2006. On January 5, 2007 LUOGI sold the machine for P70,000 atfair value as December 31, 2006 incurring a disposal cost of P5,000. In its income statement for the year endedDecember 31, 2006, LUOGI should recognize a loss of175,000200,0000135,000

Machine loose the value as machine are being used more and more but some time machine failed they…

On January 1, 2006, LUOGI Company owned a machine having a carrying amount of P240,000. The purchased four years earlier for P400,000. LUOGI uses straight-line depreciation. During Decembe determined that the machine suffered permanent impairment of its operational value and will not useful in its production process after December 31, 2006. On January 5, 2007 LUOGI sold the mach air value as December 31, 2006 incurring a disposal cost of P5,000. In its income statement for the December 31, 2006, LUOGI should recognize a loss of 175.000

On January 1, 2006, LUOGI Company owned a machine having a carrying amount of P240,000. The purchased four years earlier for P400,000. LUOGI uses straight-line depreciation. During Decembe determined that the machine suffered permanent impairment of its operational value and will not useful in its production process after December 31, 2006. On January 5, 2007 LUOGI sold the mach air value as December 31, 2006 incurring a disposal cost of P5,000. In its income statement for the December 31, 2006, LUOGI should recognize a loss of 175.000

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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