hel me answer this thank you in advance machines with the following aggregate cost and accumulatedOn January 1, 2021, Brandy Company owned a group ofProblem 32-3 (IFRS)depreciation:MachineryAccumulated depreciation90,000,00025,000,000The machines have an average remaining useful life of 4 yearsand it has been determined that this group of machinesconstitutes a cash generating unit.The fair value less cost of disposal of this group of machinesin an active market is determined to be P48,000,000.Based on supportable and reasonable assumptions, thefinancial forecast for this group of machines reveals thefollowing cash inflows and cash outflows for the next fouryears:Cash inflowsCash outflows202120222023202430,000,00032,500,00027,500,00016,000,00012,000,00017,500,00012,500,0004,000,000It is believed that a discount rate of 8% is reflective of timevalue of money. The table of present value shows the followingpresent value of 1 at 8%:PerindPresent value of 1.930.857.794.7354Required:1. Determine the value in use.2. Determine the recoverable amount.3. Prepare journal entry to record the impairment loss, if any.4. Prepare journal entry to record the depreciation for thecurrent year.123

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Answered: On January 1, 2021, Brandy Company…

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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