Brown Company's cash-generating-unit has been assessed for impairment and it has been determined that the unit...

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Brown Company's cash-generating-unit has been assessed for impairment and it has been determined that the unit has incurred an impairment loss of P240,000. The carrying amounts of the assets were as follows: Building Equipment Land Fittings P6,000,000 2,000,000 3,500,000 2,500,000 The cash-generating unit has not recorded any amount of goodwill. If the fair value less cost to sell the building is P5,960,000, what amount of impairment loss should be allocated to the equipment? Brown Company's cash-generating-unit has been assessed for impairment and it has been determined that the unit has incurred an impairment loss of P240,000. The carrying amounts of the assets were as follows: Building Equipment Land Fittings P6,000,000 2,000,000 3,500,000 2,500,000 The cash-generating unit has not recorded any amount of goodwill. If the fair value less cost to sell the building is P5,960,000, what amount of impairment loss should be allocated to the equipment?

Answer rating: 100% (QA)

To determine the amount of impairment loss allocated to the equipment we need to compa... View the full answer