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Synthia, Inc., a clothing manufacturer, purchased a sewing machine for P10,000 on July 1, 20x1. The machine had a ten- year life, a P500 residual value, and was depreciated using the straight-line method. On December 31, 20x3, a test for impairment indicates that the recoverable amount of the sewing machine is less than its carrying amount. The machine's fair value less costs of disposal on December 31, 20x3 is P3,000. What is Synthia's loss on impairment on December 31 20032

Synthia, Inc., a clothing manufacturer, purchased a sewing machine for P10,000 on July 1, 20x1. The machine had a ten- year life, a P500 residual value, and was depreciated using the straight-line method. On December 31, 20x3, a test for impairment indicates that the recoverable amount of the sewing machine is less than its carrying amount. The machine's fair value less costs of disposal on December 31, 20x3 is P3,000. What is Synthia's loss on impairment on December 31 20032

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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1. Synthia, Inc., a clothing manufacturer, purchased a sewing machine for P10,000 on July 1, 20x1. The machine had a ten- year life, a P500 residual value, and was depreciated using the straight-line method. On December 31, 20x3, a test for impairment indicates that the recoverable amount of the sewing machine is less than its carrying amount. The machine's fair value less costs of disposal on December 31, 20x3 is P3,000. What is Synthia's loss on impairment on December 31, 2003?
Transcribed Image Text:1. Synthia, Inc., a clothing manufacturer, purchased a sewing machine for P10,000 on July 1, 20x1. The machine had a ten- year life, a P500 residual value, and was depreciated using the straight-line method. On December 31, 20x3, a test for impairment indicates that the recoverable amount of the sewing machine is less than its carrying amount. The machine's fair value less costs of disposal on December 31, 20x3 is P3,000. What is Synthia's loss on impairment on December 31, 2003?
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