Shellfish Company determined that, due to the obsolescence, equipment with an original cost of P180,000 and accumulated depreciation at January 1, 2020 of P84,000 had suffered permanent impairment, and as a result should have fair value of only P60,000 as of the beginning of the year. Additionally, the remaining useful life of the equipment was reduced from eight years to three years If the company's policy is to credit accumulated depreciation when a PPE is impaired, how much should selfless report as accumulated depreciation in its December 31, 2020 statement of financial position?

Shellfish Company determined that, due to the obsolescence, equipment with an original cost of P180,000 and accumulated depreciation at January 1, 2020 of P84,000 had suffered permanent impairment, and as a result should have fair value of only P60,000 as of the beginning of the year. Additionally, the remaining useful life of the equipment was reduced from eight years to three years If the company's policy is to credit accumulated depreciation when a PPE is impaired, how much should selfless report as accumulated depreciation in its December 31, 2020 statement of financial position?

Name: Shellfish Company determined that, due to the obsolescence, equipment
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Description: Shellfish Company determined that, due to the obsolescence, equipment with an original cost ofP180,000 and accumulated depreciation at January 1, 2020 of P84,000 had suffered permanentimpairment, and as a result should have fair value of only P60,00

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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