One of MIME IMMITATE Co.'s machines has been impaired. Repairs and maintenance costs on the machine...
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One of MIME IMMITATE Co.'s machines has been impaired. Repairs and maintenance costs on the machine have been increasing over the past years making the machine a bottleneck in MIME's production. At year-end, management made a decision to sell the machine as soon as a pending application for a loan is approved and a replacement machine is acquired. Information on the machine is shown below: Carrying amount P400,000 Fair value less costs of disposal 200,000 Value in use How much is the impairment loss? 240,000 One of MIME IMMITATE Co.'s machines has been impaired. Repairs and maintenance costs on the machine have been increasing over the past years making the machine a bottleneck in MIME's production. At year-end, management made a decision to sell the machine as soon as a pending application for a loan is approved and a replacement machine is acquired. Information on the machine is shown below: Carrying amount P400,000 Fair value less costs of disposal 200,000 Value in use How much is the impairment loss? 240,000
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Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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