On January 1, 2020, Elite Company purchased equipment with a cost of P11,000,000, useful life of 10 years and no residual value. The entity used straight line depreciation.   At every year-end, the entity determined that impairment indicators are present. There is no change in the useful life or residual value.    The following information is available for impairment testing:   December 31, 2020: Fair Value less Cost of Disposal - P8,100,000 Value in Use - P8,550,000   December 31, 2021 Fair Value less Cost of Disposal - P8,400,000 Value in Use - P8,200,000   1. What is the impairment loss for 2020? 2. What is the gain on reversal of impairment for 2021? 3. What is the depreciation for 2022?

Q: Nixon

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A:

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