On January 1, 2021, Canton Inc. has equipment having a useful life of 10 years with the following cost and accumulated depreciation. The company uses straight-line method in depreciating its equipment. Equipment-P500,000 Accumulated depreciation-P150,000 On December 31, 2021, after recording depreciation expense for the year, the equipment was subjected to an assessment and it was found to be impaired due to obsolescence and physical damage. Canton Inc. has determined the following: Undiscounted cash flows of the equipment-P310,000 Fair value of the equipment less cost to sell-P225,000 Discounted cash flows of the equipment-P250,000 On December 31, 2021, Canton Inc. recognizes an impairment loss at?
On January 1, 2021, Canton Inc. has equipment having a useful life of 10 years with the following cost and accumulated depreciation. The company uses straight-line method in depreciating its equipment. Equipment-P500,000 Accumulated depreciation-P150,000 On December 31, 2021, after recording depreciation expense for the year, the equipment was subjected to an assessment and it was found to be impaired due to obsolescence and physical damage. Canton Inc. has determined the following: Undiscounted cash flows of the equipment-P310,000 Fair value of the equipment less cost to sell-P225,000 Discounted cash flows of the equipment-P250,000 On December 31, 2021, Canton Inc. recognizes an impairment loss at?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2021, Canton Inc. has equipment having a useful life of 10 years with the following cost and
Equipment-P500,000
Accumulated depreciation-P150,000
On December 31, 2021, after recording depreciation expense for the year, the equipment was subjected to an assessment and it was found to be impaired due to obsolescence and physical damage. Canton Inc. has determined the following:
Undiscounted
Fair value of the equipment less cost to sell-P225,000
Discounted cash flows of the equipment-P250,000
On December 31, 2021, Canton Inc. recognizes an impairment loss at?
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