On January 1, 2022, Roxanne Company purchased equipment with cost of P10,000,000, useful life of 10 years and no residual value. The entity used straight line depreciation. On December 31, 2022 and December 31, 2023, the entity determined that impairment indicators are present. There is no change in useful life or residual value. The following information is available for impairment testing at each year-end: December 31, 2022 December 31, 2023 Fair value less cost of disposal 8,100,000 8,400,000 Value in use 8,550,000 8,200,000 1. What is the impairment loss for 2022? A. 900,000 C. 600,000 B. 450,000 D. Zero 2. What is the gain on reversal of impairment for 2023? A. 400,000 B. 800,000 C. 600,000 D. Zero 3. What is the depreciation for 2024? A. 1,000,000 B. 1,050,000 C. 1,025,000 D. 950,000

On January 1, 2022, Roxanne Company purchased equipment with cost of P10,000,000, useful life of 10 years and no residual value. The entity used straight line depreciation. On December 31, 2022 and December 31, 2023, the entity determined that impairment indicators are present. There is no change in useful life or residual value. The following information is available for impairment testing at each year-end: December 31, 2022 December 31, 2023 Fair value less cost of disposal 8,100,000 8,400,000 Value in use 8,550,000 8,200,000 1. What is the impairment loss for 2022? A. 900,000 C. 600,000 B. 450,000 D. Zero 2. What is the gain on reversal of impairment for 2023? A. 400,000 B. 800,000 C. 600,000 D. Zero 3. What is the depreciation for 2024? A. 1,000,000 B. 1,050,000 C. 1,025,000 D. 950,000

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Description: On January 1, 2022, Roxanne Company purchased equipment with cost of P10,000,000, useful life of 10 years and noresidual value. The entity used straight line depreciation. On December 31, 2022 and December 31, 2023, the entitydetermined that impairm

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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