BIRD COMPANY has a group of machines having an aggregate carrying amount at December 31, 2021 of P1,234,500. Upon analysis, the following information about the future expected cash inflows and outflows based on the diminishing productivity expected of the machinery: Year 2022 2023 2024 2025 Expected cash inflows 850,000 700,000 580,000 450,000 Expected cash Outflows 360,000 310,000 280,000 195,000 The selling price of the machinery was determined by reference to used machinery quotations from a well-known dealer. After deducting the estimated disposal costs, the net selling price is calculated as P860,000 The pre-tax discount rate and post-tax discount rate r reflecting the specific risks of the machinery are 5% and 3% respectively The net recoverable amount of the machinery is The amount of impairment loss is
BIRD COMPANY has a group of machines having an aggregate carrying amount at December 31, 2021 of P1,234,500.
Upon analysis, the following information about the future expected
|
Year |
2022 |
2023 |
2024 |
2025 |
|
Expected cash inflows |
850,000 |
700,000 |
580,000 |
450,000 |
|
Expected |
360,000 |
310,000 |
280,000 |
195,000 |
The selling price of the machinery was determined by reference to used machinery quotations from a well-known dealer. After deducting the estimated disposal costs, the net selling price is calculated as P860,000
The pre-tax discount rate and post-tax discount rate r reflecting the specific risks of the machinery are 5% and 3% respectively
- The net recoverable amount of the machinery is
- The amount of impairment loss is
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