On december 31 2020 athena company had an equipment

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. On December 31, 2020, Athena Company had an equipment with cost of P9,000,000 and
accumulated depreciation of P3,000,000. Due to obsolescence and physical damage, the equipment was
found to the impaired. On same date, the entity determined that the equipment had a fair value less of
disposal of P4,500,000, discounted net cash inflows of P4,000,000 and undiscounted net cash inflows of
P5,000,000. What is the impairment loss for 2020?
A. 1,500,000 B. 2,000,000 C. 1,000,000 D. 0
Use the following information for the next two (3) questions:
Alyssa Company determined that the electronics division is a cash generating unit. The entity calculated the
value in use of the division at P8,000,000. The carrying amounts of assets are building P5,000,000,

equipment P3,000,000 and inventory P2,000,000. The entity also determined that the fair value less cost of
disposal of the building is P4,500,000.
12. What is the impairment loss on building ?
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What is the impairment loss on equipment ?
14. What is the impairment loss on inventory ?
Use the following information for the next two (3) questions:
On January 1, 2020, Joyce Company purchased equipment with cost of P10,000,000, useful life of 10 years
and no residual value. The entity used straight line depreciation. On December 31, 2020 and December 31,
2021, the entity determined that the impairment indicators are present. There is no change in useful life or
residual value.
December 31, 2020 December 31, 2021
Fair value less cost of disposal 8,100,000 8,300,000
Value in use 8,550,000 8,200,000
15. What is the impairment loss for 2020 ?
A. 900,000 B. 450,000 C. 600,000 D. 0