On January $1,2022,$ Coco Company acquired a factory equipment at a cost of P$300,000.$ The equipment is being depreciated using the straight$-$line method over its projected useful life of $10$ years. On December $31,2023,$ a determination was made that the asset's recoverable amount was only P$192,000.$ On December $31,2024,$ the assets recoverable amount was determined to be P$222,000$ and management believes that the impairment loss previously recognized should be reversed.

REQUIRED:

$($a$)$ How much impairment loss should be recognized on December $31,2023?$

$($b$)$ What is the asset's carrying value on December $31,2024?$

$($c$)$ How much impairment recovery should be reported in $2024?$

Answer rating: 100% (QA)

The straightline depreciation method spreads the cost of the asset equally over its useful life To f... View the full answer