company acquired machinery with cost of P2,200,000. with an estimated useful life of 10 years and estimated salvage value of P200,000 on January 1, 2018. The machinery has a recoverable amount (fair value) of P2,990,000 with an estimated residual value of P200,000 on January 1, 2019. On January 1, 2021, based on objective evidence, the asset was found to have been impaired. The machinery now has a recoverable amount (fair value) of P939,500 with an estimated value of P40,000. QUESTION: Based on the above data, answer the following: Assuming the company is using revaluation model. Answer the questions: How much is the impaired loss in 2021? How much is the depreciation in 2021?
company acquired machinery with cost of P2,200,000. with an estimated useful life of 10 years and estimated salvage value of P200,000 on January 1, 2018. The machinery has a recoverable amount (fair value) of P2,990,000 with an estimated residual value of P200,000 on January 1, 2019. On January 1, 2021, based on objective evidence, the asset was found to have been impaired. The machinery now has a recoverable amount (fair value) of P939,500 with an estimated value of P40,000. QUESTION: Based on the above data, answer the following: Assuming the company is using revaluation model. Answer the questions: How much is the impaired loss in 2021? How much is the depreciation in 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A company acquired machinery with cost of P2,200,000. with an estimated useful life of 10 years and estimated salvage value of P200,000 on January 1, 2018. The machinery has a recoverable amount (fair value) of P2,990,000 with an estimated residual value of P200,000 on January 1, 2019.
On January 1, 2021, based on objective evidence, the asset was found to have been impaired. The machinery now has a recoverable amount (fair value) of P939,500 with an estimated value of P40,000.
QUESTION:
Based on the above data, answer the following:
Assuming the company is using revaluation model. Answer the questions:
- How much is the impaired loss in 2021?
- How much is the
depreciation in 2021?
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