6.ABC Company has determined that its electronic division is a cash generating unit. The company calculated the value in use of the division to be P8,000,000. The carrying amounts of the assets are as follows: Building5,000,000Equipment3,000,000Inventory2,000,00010,000,000ABC Company has also determined that the fair value less costto sell of the building is P4,500,000. What is the impairment lossto be allocated to the equipment?

The impairment loss is when the fair value is less than the carrying value of the asset. Impairment…

Answered: ABC Company h

Business

Accounting

ABC Company h

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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