Use the following information for the next two questions: On January 1, 20x1, Entity A acquires a building to be held as investment property for a total cost of P1,500,000. The building is estimated to have a 30-year useful life and a 5% residual value. Entity A uses the straight-line method of depreciation. On December 31, 20x5, Entity A determines that the building is impaired and makes the following estimates: Fair value less costs to sell P900,000 Value in use P1,000,000 Following the impairment, Entity A revises its estimate of residual value to 5% of the recoverable amount. 9. How much is the impairment loss on December 31, 20x5? a. 226,500 b. 326,500 c. 257,500 d. 262,500

Use the following information for the next two questions: On January 1, 20x1, Entity A acquires a building to be held as investment property for a total cost of P1,500,000. The building is estimated to have a 30-year useful life and a 5% residual value. Entity A uses the straight-line method of depreciation. On December 31, 20x5, Entity A determines that the building is impaired and makes the following estimates: Fair value less costs to sell P900,000 Value in use P1,000,000 Following the impairment, Entity A revises its estimate of residual value to 5% of the recoverable amount. 9. How much is the impairment loss on December 31, 20x5? a. 226,500 b. 326,500 c. 257,500 d. 262,500

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 7RE: Bliss Company owns an asset with an estimated life of 15 years and an estimated residual value of...

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