PROBLEM: Fluffy Company's division one is a cash generating unit. The company has determined the recoverable value of division one to be P440,000. Moreover, the company has also determined the following for its building: Value in use P240,000 Fair value less cost of disposal 260,000 The carrying amounts of division one's assets are as follows: Inventory P160,000 Building 320,000 Equipment 160,000 Goodwill 10,000 How much impairment loss was allocated to the inventory?* 1 punto 70,000 50,000 52,500 75,000 How much impairment loss was allocated to the building? * 1 punto 100,000 105,000 80,000 60,000 How much is the impairment loss of division one?* 1 punto 200,000 210,000 150,000 130,000 Assume the same information except that the value in use and the fair value less cost of disposal of the building are P180,000 and P200,000, respectively, how much impairment loss will be allocated to the building?* 1 punto 100,000 120,000 105,000 140,00 How much impairment loss was allocated to the equipment?* 1 punto 50,000 70,000 75,000 52,500
PROBLEM: Fluffy Company's division one is a cash generating unit. The company has determined the recoverable value of division one to be P440,000. Moreover, the company has also determined the following for its building: Value in use P240,000 Fair value less cost of disposal 260,000 The carrying amounts of division one's assets are as follows: Inventory P160,000 Building 320,000 Equipment 160,000 Goodwill 10,000 How much impairment loss was allocated to the inventory?* 1 punto 70,000 50,000 52,500 75,000 How much impairment loss was allocated to the building? * 1 punto 100,000 105,000 80,000 60,000 How much is the impairment loss of division one?* 1 punto 200,000 210,000 150,000 130,000 Assume the same information except that the value in use and the fair value less cost of disposal of the building are P180,000 and P200,000, respectively, how much impairment loss will be allocated to the building?* 1 punto 100,000 120,000 105,000 140,00 How much impairment loss was allocated to the equipment?* 1 punto 50,000 70,000 75,000 52,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
PROBLEM:
Fluffy Company's division one is a cash generating unit. The company has determined the recoverable value of division one to be P440,000. Moreover, the company has also determined the following for its building:
Value in use P240,000
Fair value less cost of disposal 260,000
The carrying amounts of division one's assets are as follows:
Inventory P160,000
Building 320,000
Equipment 160,000
How much impairment loss was allocated to the inventory?*
1 punto
70,000
50,000
52,500
75,000
How much impairment loss was allocated to the building? *
1 punto
100,000
105,000
80,000
60,000
How much is the impairment loss of division one?*
1 punto
200,000
210,000
150,000
130,000
Assume the same information except that the value in use and the fair value less cost of disposal of the building are P180,000 and P200,000, respectively, how much impairment loss will be allocated to the building?*
1 punto
100,000
120,000
105,000
140,00
How much impairment loss was allocated to the equipment?*
1 punto
50,000
70,000
75,000
52,500
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 6 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education