Hearts Company has various cash generating units. One cash generating unit has the following carryingamount of assets at year-end:Cash600,0001,400,0002,500,000InventoryLandPlant and equipmentAccumulated depreciation9,000,0001,500,000Goodwill1,000,000The management determined the value in use of the cash generating unit at P8,500,000. The fair valueless cost of disposal for the inventory was greater than the carrying amount.1. Determine the amount of impairment loss.

As given , we need to determine amount of impairment loss . Value in use as determined by management…

Hearts Company has various cash generating units. One cash generating unit has the following carrying amount of assets at year-end: Cash 600,000 Inventory 1,400,000 Land 2,500,000 Plant and equipment Accumulated depreciation 9,000,000 1,500,000 1,000,000 Goodwill The management determined the value in use of the cash generating unit at P8,500,000. The fair value less cost of disposal for the inventory was greater than the carrying amount. 1. Determine the amount of impairment loss.

Hearts Company has various cash generating units. One cash generating unit has the following carrying amount of assets at year-end: Cash 600,000 Inventory 1,400,000 Land 2,500,000 Plant and equipment Accumulated depreciation 9,000,000 1,500,000 1,000,000 Goodwill The management determined the value in use of the cash generating unit at P8,500,000. The fair value less cost of disposal for the inventory was greater than the carrying amount. 1. Determine the amount of impairment loss.

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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