On January 2, 2020, Quezon Inc. purchased equipment with a cost ofP10,500,000, a useful life of 12 years and no salvage value. The Companyuses sum-of-the-years-digit method of depreciation. At December 31, 2020and December 31, 2021, the company determines that impairment indicatorsare present. The following information is available for impairment testing ateach year end:12/31/202012/31/2021Fair value less cost to sellP8,515,000P7,530,000Value-in-useP8,551,000P7,315,000There is no change in the asset's useful life or salvage value. The 2021income statement will report gain on recovery of?

Impairment Loss is the difference between Carrying Amount and Recoverable Amount. Recoverable…

Answered: There is no change in the asset's…

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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There is no change in the asset's useful life or salvage value. The 2021 income statement will report gain on recovery of?