27. On December 31, 2022, Marizor Company believed that the assets of a cash generating unit are impaired based on ananalysis of economic indicators. The assets and liabilities of the cash generating unit at carrying amount on December31, 2022 are:Cash4,000,000Accounts receivable6,000,000Allowance for doubtful accounts1,000,000InventoryProperty, plant and equipmentAccumulated depreciation7,000,00022,000,0004,000,000Goodwill3,000,0002,000,000Accounts payableLoans payableThe entity determined that the value in use of the cash generating unit is P28,000,000. The accounts receivable areconsidered collectible, except those considered doubtful. The carrying amount of the inventory is lower than fair valueless cost of disposal. What is the impairment loss to be allocated to property, plant and equipment?А. 3,600,0001,000,000В. 6,000,000С. 3,000,000D. 1,800,000

Impairment Loss: When the carrying value of an asset or cash-generating unit exceeds the recoverable…

27. On December 31, 2022, Marizor Company believed that the assets of a cash generating unit are impaired based on an analysis of economic indicators. The assets and liabilities of the cash generating unit at carrying amount on December 31, 2022 are: Cash 4,000,000 Accounts receivable 6,000,000 Allowance for doubtful accounts 1,000,000 7,000,000 Inventory Property, plant and equipment Accumulated depreciation 22,000,000 4,000,000 3,000,000 Goodwill Accounts payable Loans payable The entity determined that the value in use of the cash generating unit is P28,000,000. The accounts receivable are considered collectible, except those considered doubtful. The carrying amount of the inventory is lower than fair value less cost of disposal. What is the impairment loss to be allocated to property, plant and equipment? А. 3,600,000 В. 6,000,000 С. 3,000,000 2,000,000 1,000,000 D. 1,800,000

27. On December 31, 2022, Marizor Company believed that the assets of a cash generating unit are impaired based on an analysis of economic indicators. The assets and liabilities of the cash generating unit at carrying amount on December 31, 2022 are: Cash 4,000,000 Accounts receivable 6,000,000 Allowance for doubtful accounts 1,000,000 7,000,000 Inventory Property, plant and equipment Accumulated depreciation 22,000,000 4,000,000 3,000,000 Goodwill Accounts payable Loans payable The entity determined that the value in use of the cash generating unit is P28,000,000. The accounts receivable are considered collectible, except those considered doubtful. The carrying amount of the inventory is lower than fair value less cost of disposal. What is the impairment loss to be allocated to property, plant and equipment? А. 3,600,000 В. 6,000,000 С. 3,000,000 2,000,000 1,000,000 D. 1,800,000

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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