• Compute the Impairment Loss of CGU• Compute the Carrying amount of Inventory, AR, PPE(net), Patent and Goodwill after the Impairment At year-end, Burglar Company has a cash generating unitwith the following assets at carrying amount:InventoryAccounts receivablePlant and equipmentAccumulated depreciationPatentGoodwili200,000300,0006,000,0002,600,000oo 850,000100,000The accounts receivable are regarded as collectible and theinventory has a fair value less cost of disposal which is equal tothe carrying amount. The patent has a fair value less cost ofdispotal of P750,000.At year-end, the entity determined the value in use of the unitat P4,050,000.

In the given question, a Cash generating unit is given and we need to compute the impairment loss of…

Accounts receivable Plant and equipment Accumulated depreciation Patent Goodwili 300,000 6,000,000 2,600,000 réd 850,000 100,000 The accounts receivable are regarded as collectible and the inventory has a fair value less cost of disposal which is equal to the carrying amount. The patent has a fair value less cost of dispotal of P750,000. At year-end, the entity determined the value in use of the unit at P4,050,000.

Accounts receivable Plant and equipment Accumulated depreciation Patent Goodwili 300,000 6,000,000 2,600,000 réd 850,000 100,000 The accounts receivable are regarded as collectible and the inventory has a fair value less cost of disposal which is equal to the carrying amount. The patent has a fair value less cost of dispotal of P750,000. At year-end, the entity determined the value in use of the unit at P4,050,000.

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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