2. The Cash generating unit of the Logitech Company is the electronic division. The said company calculated the value in use of the division and amounted to P8,000,000. The carrying amounts of the asset are presented as follows: Building Equipment Inventory a. 8,000,000 For additional information, the company also determined that the fair value less cost to sell the building is P4,500,000. b. 1,000,000 6,000,000 What should be the amount reported as impairment loss? c. 3,500,000 3,000,000 d. 11,500,000 2,500,000

2. The Cash generating unit of the Logitech Company is the electronic division. The said company calculated the value in use of the division and amounted to P8,000,000. The carrying amounts of the asset are presented as follows: Building Equipment Inventory a. 8,000,000 For additional information, the company also determined that the fair value less cost to sell the building is P4,500,000. b. 1,000,000 6,000,000 What should be the amount reported as impairment loss? c. 3,500,000 3,000,000 d. 11,500,000 2,500,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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