Omniknight Company has various cash generating units. On December 31, 2020, one cash generating unit has...

 

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Omniknight Company has various cash generating units. On December 31, 2020, one cash generating unit has the following carrying amount of assets: Cash Inventory Land 600,000 1,400,000 2,500,000 Plant and equipment Accumulated Depreciation Goodwill 9,000,000 1,500,000 1,000,000 As part of the impairment testing procedure, the management of the entity determined the value in use of the cash generating unit at P8,500,000. The fair value less cost of disposal for the inventory is greater than the carrying amount. What is the impairment loss to be allocated to plant and equipment? Omniknight Company has various cash generating units. On December 31, 2020, one cash generating unit has the following carrying amount of assets: Cash Inventory Land 600,000 1,400,000 2,500,000 Plant and equipment Accumulated Depreciation Goodwill 9,000,000 1,500,000 1,000,000 As part of the impairment testing procedure, the management of the entity determined the value in use of the cash generating unit at P8,500,000. The fair value less cost of disposal for the inventory is greater than the carrying amount. What is the impairment loss to be allocated to plant and equipment?

Answer rating: 100% (QA)

To determine the impairment loss to be allocated to plant and equipment we first need to calculate t... View the full answer