What is the carrying value of Land after the recognition of the impairment loss?
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter7: Fixed Assets, Natural Resources, And Intangible Assets
Section: Chapter Questions
Problem 7.1MBA
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Question
What is the carrying value of Land after the recognition of the impairment loss?
![Hearts Company has various cash generating units. One cash generating unit has the following carrying
amount of assets at year-end:
600,000
1,400,000
2,500,000
9,000,000
1,500,000
1,000,000
Cash
Inventory
Land
Plant and equipment
Accumulated depreciation
Goodwill
The management determined the value in use of the cash generating unit at P8,500,000. The fair value
less cost of disposal for the inventory was greater than the carrying amount.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa161d165-ac12-4daa-8bfb-545e937041a8%2F6affd610-2713-4359-a4e5-332325145888%2Fsmiupls_processed.png&w=3840&q=75)
Transcribed Image Text:Hearts Company has various cash generating units. One cash generating unit has the following carrying
amount of assets at year-end:
600,000
1,400,000
2,500,000
9,000,000
1,500,000
1,000,000
Cash
Inventory
Land
Plant and equipment
Accumulated depreciation
Goodwill
The management determined the value in use of the cash generating unit at P8,500,000. The fair value
less cost of disposal for the inventory was greater than the carrying amount.
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