revaluation deficit/impairment loss

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
how much is the revaluation deficit/impairment loss to be recognized on the income statement as of dec. 31, 2023
On January 1, 2020, G Corp. purchased a unit of equipment for P20,000,000. The
asset is estimated to have a useful life of 20 years with no residual value.
On December 31, 2021, G Corp. gathered information concluding that the asset's
sound value increased to P36,000,000. However, two years after, on December 31,
2023, the fair value of the equipment dropped to P20,000,000. The entity also revised
its remaining useful life to 10 years.
Transcribed Image Text:On January 1, 2020, G Corp. purchased a unit of equipment for P20,000,000. The asset is estimated to have a useful life of 20 years with no residual value. On December 31, 2021, G Corp. gathered information concluding that the asset's sound value increased to P36,000,000. However, two years after, on December 31, 2023, the fair value of the equipment dropped to P20,000,000. The entity also revised its remaining useful life to 10 years.
Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education