PROBLEM: Fluffy Company's division one is a cash generating unit. The company has determined the recoverable value of division one to be P440,000. Moreover, the company has also determined the following for its building: Value in use P240,000 Fair value less cost of disposal 260,000 The carrying amounts of division one's assets are as follows: Inventory P160,000 Building 320,000 Equipment 160,000 Goodwill 10,000 How much impairment loss was allocated to the inventory?* 1 punto 70,000 50,000 52,500 75,000 How much impairment loss was allocated to the building? * 1 punto 100,000 105,000 80,000 60,000 How much is the impairment loss of division one?* 1 punto 200,000 210,000 150,000 130,000 Assume the same information except that the value in use and the fair value less cost of disposal of the building are P180,000 and P200,000, respectively, how much impairment loss will be allocated to the building?* 1 punto 100,000 120,000 105,000 140,00 How much impairment loss was allocated to the equipment?* 1 punto 50,000 70,000 75,000 52,500

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter8: Investing Activities

Section: Chapter Questions

Problem 1.3AIC: Estimate the average total estimated useful life of depreciable property, plant, and equipment....

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PROBLEM:
Fluffy Company's division one is a cash generating unit. The company has determined the recoverable value of division one to be P440,000. Moreover, the company has also determined the following for its building:
Value in use P240,000
Fair value less cost of disposal 260,000

The carrying amounts of division one's assets are as follows:
Inventory P160,000
Building 320,000
Equipment 160,000
Goodwill 10,000

How much impairment loss was allocated to the inventory?*

1 punto

70,000

50,000

52,500

75,000

How much impairment loss was allocated to the building? *

1 punto

100,000

105,000

80,000

60,000

How much is the impairment loss of division one?*

1 punto

200,000

210,000

150,000

130,000

Assume the same information except that the value in use and the fair value less cost of disposal of the building are P180,000 and P200,000, respectively, how much impairment loss will be allocated to the building?*

1 punto

100,000

120,000

105,000

140,00

How much impairment loss was allocated to the equipment?*

1 punto

50,000

70,000

75,000

52,500

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