Please refer to the picture below for information. Kindly use a Table in showing the complete solution. Thank you so much. Question: What is the impairment loss to be allocated to Inventory?a. P717,391.30b. P513,157.89c. P204,233.41d. P0 10. The following assets and liabilities are included in a Cash Generating Unit of Violet Company as ofDecember 31, 2016:Cash and Cash EquivalentsP1,000,0005,000,000(400,000)15,000,000Trade ReceivablesAllowance for Uncollectible AccountsInventoryBuildingAccumulated Depreciation - BuildingEquipmentAccumulated Depreciation - Equipment20,000,000(5,000,000)10,000,000(2,000,000)Goodwill800,000Accounts PayableNotes Payable(300,000)(10,000,000)P34,100,000The Company determined that the CGU was impaired. Additional information is as follows:Discounted Cash flowP29,000,000Undiscounted Cash flow48,000,000Fair Value35,000,0003,000,00014,800,000Cost to sellFair Value of BuildingThe trade receivables are considered collectible except those considered doubtful.

Impairment loss occurs when the carrying amount of the asset exceeds its recoverable amount.…

Answered: Question: What is the impairment loss…

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Question: What is the impairment loss to be allocated to Inventory? a. P717,391.30 b. P513,157.89 c. P204,233.41 d. P0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

Please refer to the picture below for information. Kindly use a Table in showing the complete solution. Thank you so much.

Question: What is the impairment loss to be allocated to Inventory?

a. P717,391.30

b. P513,157.89

c. P204,233.41

d. P0

10. The following assets and liabilities are included in a Cash Generating Unit of Violet Company as of
December 31, 2016:
Cash and Cash Equivalents
P1,000,000
5,000,000
(400,000)
15,000,000
Trade Receivables
Allowance for Uncollectible Accounts
Inventory
Building
Accumulated Depreciation - Building
Equipment
Accumulated Depreciation - Equipment
20,000,000
(5,000,000)
10,000,000
(2,000,000)
Goodwill
800,000
Accounts Payable
Notes Payable
(300,000)
(10,000,000)
P34,100,000
The Company determined that the CGU was impaired. Additional information is as follows:
Discounted Cash flow
P29,000,000
Undiscounted Cash flow
48,000,000
Fair Value
35,000,000
3,000,000
14,800,000
Cost to sell
Fair Value of Building
The trade receivables are considered collectible except those considered doubtful.

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