Silver Company operates a production line which is treated as a cash generating unit for impairment review purposes. At year-end, the carrying amounts of the noncurrent assets are as follows: Goodwill 1,100,000 Machinery 2,200,000 The value in use of the production line is estimated at P2,700,000 at this time. 7. What is the revised carrying amount of goodwill after recognition of impairment? a. 1,100,000 b. 900,000 c. 800,000 d. 500,000 8. What is the revised carrying amount of machinery after recognition of impairment? a. 2,200,000 b. 1,800,000 c. 1,600,000 d. 1,900,000
Silver Company operates a production line which is treated as a cash generating unit for impairment review purposes. At year-end, the carrying amounts of the noncurrent assets are as follows: Goodwill 1,100,000 Machinery 2,200,000 The value in use of the production line is estimated at P2,700,000 at this time. 7. What is the revised carrying amount of goodwill after recognition of impairment? a. 1,100,000 b. 900,000 c. 800,000 d. 500,000 8. What is the revised carrying amount of machinery after recognition of impairment? a. 2,200,000 b. 1,800,000 c. 1,600,000 d. 1,900,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Silver Company operates a production line which is treated as a cash generating unit for impairment review
purposes. At year-end, the carrying amounts of the noncurrent assets are as follows:
1,100,000
Goodwill
Machinery
2,200,000
The value in use of the production line is estimated at P2,700,000 at this time.
7. What is the revised carrying amount of goodwill after recognition of impairment?
a. 1,100,000
b. 900,000
C.
d. 500,000
800,000
8. What is the revised carrying amount of machinery after recognition of impairment?
a. 2,200,000
b. 1,800,000
c. 1,600,000
d. 1,900,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3c3ede21-48b9-4cce-a19c-8293cf0c04ad%2F177cfee7-4932-460b-80b5-a9e4aa29fe97%2Fmtd9km_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Silver Company operates a production line which is treated as a cash generating unit for impairment review
purposes. At year-end, the carrying amounts of the noncurrent assets are as follows:
1,100,000
Goodwill
Machinery
2,200,000
The value in use of the production line is estimated at P2,700,000 at this time.
7. What is the revised carrying amount of goodwill after recognition of impairment?
a. 1,100,000
b. 900,000
C.
d. 500,000
800,000
8. What is the revised carrying amount of machinery after recognition of impairment?
a. 2,200,000
b. 1,800,000
c. 1,600,000
d. 1,900,000
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