A company owns machinery with a book value of P2,200,000. It is estimated that the machinery will generate future cash flows of P1,995,000. The machinery has a fair value of P1,915,000. The journal entry to record the impairment loss will reduce income from continuing operations by P205,000. include a P285,000 credit to the asset account. record an extraordinary loss of P80,000. increase the asset's Accumulated Depreciation account by P285,000.

A company owns machinery with a book value of P2,200,000. It is estimated that the machinery will generate future cash flows of P1,995,000. The machinery has a fair value of P1,915,000. The journal entry to record the impairment loss will reduce income from continuing operations by P205,000. include a P285,000 credit to the asset account. record an extraordinary loss of P80,000. increase the asset's Accumulated Depreciation account by P285,000.

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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