Coachwhip Corporation purchased a machinery on January 1, 2022 forP5,000,000. The same had an expected useful life of 8 years. Straight linedepreciation method is in place for similar items. On January 1, 2024, theasset is appraised as having a sound value of P4,500,000. On January 1,2027, the asset had a recoverable value of P1.375.000.How much is the loss on impairment should be recognized on January 1, 2027? Coachwhip Corporation purchased a machinery on January 1, 2022 forP5,000,000. The same had an expected useful life of 8 years. Straight linedepreciation method is in place for similar items. On January 1, 2024, theasset is appraised as having a sound value of P4,500,000. On January 1,2027, the asset had a recoverable value of P1,375,000.How much is the loss on impairment should be recognized on January 1,2027?

As per straight line method of depreciation Depreciation per annum = (cost - Residual value) /useful…

Answered: Coachwhip Corporation purchased a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Coachwhip Corporation purchased a machinery on January 1, 2022 for P5,000,000. The same had an expected useful life of 8 years. Straight line depreciation method is in place for similar items. On January 1, 2024, the asset is appraised as having a sound value of P4,500,000. On January 1, 2027, the asset had a recoverable value of P1.375.000. How much is the loss on impairment should be recognized on January 1, 2027?

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