ummer Inc has machine with a carrying value of 450,000 on December 31, 2021. The following information was available on December 31, 2021: · Expected net cash flows (undiscounted)- P420,000 · Expected net cash flows discounted at 7%- P400,000 · Fair value, using the assets with other assets- P415,000 · Fair value, assuming the assets are sold stand-alone- P428,000 What is the impairment loss that SUmmer Inc must report in its 2021 income statement for this m
ummer Inc has machine with a carrying value of 450,000 on December 31, 2021. The following information was available on December 31, 2021: · Expected net cash flows (undiscounted)- P420,000 · Expected net cash flows discounted at 7%- P400,000 · Fair value, using the assets with other assets- P415,000 · Fair value, assuming the assets are sold stand-alone- P428,000 What is the impairment loss that SUmmer Inc must report in its 2021 income statement for this m
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Summer Inc has machine with a carrying value of 450,000 on December 31, 2021. The following information was available on December 31, 2021:
· Expected net
· Expected net cash flows discounted at 7%- P400,000
· Fair value, using the assets with other assets- P415,000
· Fair value, assuming the assets are sold stand-alone- P428,000
What is the impairment loss that SUmmer Inc must report in its 2021 income statement for this machine?
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