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less cost of disposal. What is the impairment loss to be allocated to property, plant and equipment? A. 3,600,000 B. 6,000,000 C. 3,000,000 D. 1,800,000

less cost of disposal. What is the impairment loss to be allocated to property, plant and equipment? A. 3,600,000 B. 6,000,000 C. 3,000,000 D. 1,800,000

FINANCIAL ACCOUNTING
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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On December 31, 2022, Marizor Company believed that the assets of a cash generating unit are impaired based on an analysis of economic indicators. The assets and liabilities of the cash generating unit at carrying amount on December 31, 2022 are: Cash 4,000,000 6,000,000 1,000,000 7,000,000 22,000,000 4,000,000 Accounts receivable Allowance for doubtful accounts Inventory Property, plant and equipment Accumulated depreciation Goodwill 3,000,000 Accounts payable Loans payable The entity determined that the value in use of the cash generating unit is P28,000,000. The accounts receivable are considered collectible, except those considered doubtful. The carrying amount of the inventory is lower than fair value less cost of disposal. What is the impairment loss to be allocated to property, plant and equipment? 2,000,000 1,000,000 A. 3,600,000 В. 6,000,000 С. 3,000,000 D. 1,800,000
Transcribed Image Text:On December 31, 2022, Marizor Company believed that the assets of a cash generating unit are impaired based on an analysis of economic indicators. The assets and liabilities of the cash generating unit at carrying amount on December 31, 2022 are: Cash 4,000,000 6,000,000 1,000,000 7,000,000 22,000,000 4,000,000 Accounts receivable Allowance for doubtful accounts Inventory Property, plant and equipment Accumulated depreciation Goodwill 3,000,000 Accounts payable Loans payable The entity determined that the value in use of the cash generating unit is P28,000,000. The accounts receivable are considered collectible, except those considered doubtful. The carrying amount of the inventory is lower than fair value less cost of disposal. What is the impairment loss to be allocated to property, plant and equipment? 2,000,000 1,000,000 A. 3,600,000 В. 6,000,000 С. 3,000,000 D. 1,800,000
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