On January 1, 2006, LUOGI Company owned a machine having a carrying amount of P240,000. The machine waspurchased four years earlier for P400,000. LUOGI uses straight-line depreciation. During December 2006 LUOGIdetermined that the machine suffered permanent impairment of its operational value and will not be economicallyuseful in its production process after December 31, 2006. On January 5, 2007 LUOGI sold the machine for P70,000 atfair value as December 31, 2006 incurring a disposal cost of P5,000. In its income statement for the year endedDecember 31, 2006, LUOGI should recognize a loss of175,000200,0000135,000

Machine loose the value as machine are being used more and more but some time machine failed they…

On January 1, 2006, LUOGI Company owned a machine having a carrying amount of P240,000. The purchased four years earlier for P400,000. LUOGI uses straight-line depreciation. During Decembe determined that the machine suffered permanent impairment of its operational value and will not useful in its production process after December 31, 2006. On January 5, 2007 LUOGI sold the mach air value as December 31, 2006 incurring a disposal cost of P5,000. In its income statement for the December 31, 2006, LUOGI should recognize a loss of 175.000

On January 1, 2006, LUOGI Company owned a machine having a carrying amount of P240,000. The purchased four years earlier for P400,000. LUOGI uses straight-line depreciation. During Decembe determined that the machine suffered permanent impairment of its operational value and will not useful in its production process after December 31, 2006. On January 5, 2007 LUOGI sold the mach air value as December 31, 2006 incurring a disposal cost of P5,000. In its income statement for the December 31, 2006, LUOGI should recognize a loss of 175.000

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

On January 1, 2006, LUOGI Company owned a machine having a carrying amount of P240,000. The machine was
purchased four years earlier for P400,000. LUOGI uses straight-line depreciation. During December 2006 LUOGI
determined that the machine suffered permanent impairment of its operational value and will not be economically
useful in its production process after December 31, 2006. On January 5, 2007 LUOGI sold the machine for P70,000 at
fair value as December 31, 2006 incurring a disposal cost of P5,000. In its income statement for the year ended
December 31, 2006, LUOGI should recognize a loss of
175,000
200,000
0
135,000

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