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On december 31 2020 athena company had an equipment

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11. On December 31, 2020, Athena Company had an equipment with cost of P9,000,000 andaccumulated depreciation of P3,000,000. Due to obsolescence and physical damage, the equipment wasfound to the impaired. On same date, the entity determined that the equipment had a fair value less ofdisposal of P4,500,000, discounted net cash inflows of P4,000,000 and undiscounted net cash inflows ofP5,000,000. What is the impairment loss for 2020?A.1,500,000B.2,000,000C.1,000,000D.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 thevalue 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 ofdisposal of the building is P4,500,000.12.What is the impairment loss onbuilding?
131What is the impairment loss onequipment?
14.What is the impairment loss oninventory?
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 yearsand 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 orresidual value.December 31, 2020December 31, 2021Fair value less cost of disposal8,100,0008,300,000Value in use8,550,0008,200,00015. What is the impairment loss for2020?A.900,000B.450,000C.600,000D.0

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Term
Spring
Professor
Motiska
Tags
Depreciation, Generally Accepted Accounting Principles, a Government, government grant

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