Building 2,000,000 Inventory 1,500,000 Trademark 1,000,000 Goodwill 500,000 There is a declining interest in toy train because of the aggressive marketing of computer-based toys. Management of ABC Company measured the value in use of the toy train division on Dec 31, 2021 at P3,600,000. What is the impairment loss to be allocated to the building?
Building 2,000,000 Inventory 1,500,000 Trademark 1,000,000 Goodwill 500,000 There is a declining interest in toy train because of the aggressive marketing of computer-based toys. Management of ABC Company measured the value in use of the toy train division on Dec 31, 2021 at P3,600,000. What is the impairment loss to be allocated to the building?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
5.On Jan 1, 2021, ABC Company acquired all the assets and liabilities of another entity. The acquiree has a number of operating divisions, including one whose major industry is the manufacture of toy train. The toy train division is regarded as a cash generating unit. In paying P20,000,000 for the net assets of the acquiree, ABC Company calculated that it had acquired
![Building
2,000,000
Inventory
1,500,000
Trademark
1,000,000
Goodwill
500,000
There is a declining interest in toy train because of the aggressive marketing
of computer-based toys. Management of ABC Company measured the
value in use of the toy train division on Dec 31, 2021 at P3,600,000.
What is the impairment loss to be allocated to the building?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbd356927-fd94-40ed-a9a4-f8b37c242b66%2F166dca29-b998-4618-b09a-4b1187520e08%2F1jgz6bc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Building
2,000,000
Inventory
1,500,000
Trademark
1,000,000
Goodwill
500,000
There is a declining interest in toy train because of the aggressive marketing
of computer-based toys. Management of ABC Company measured the
value in use of the toy train division on Dec 31, 2021 at P3,600,000.
What is the impairment loss to be allocated to the building?
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education