Question 6 yet answ Marked out of 3.00 At year-end, Generous Company has a cash generating...

Transcribed Image Text:

Question 6 yet answ Marked out of 3.00 At year-end, Generous Company has a cash generating unit with the following assets and liabilities at carrying amount: Inventory P240,000 Accounts Receivable P360,000 Plant and Equipment P7,200,000 Accumulated Depreciation P3,120,000 Patent P1,020,000 Goodwill P120,000 Accounts Payable P750,000 The accounts receivables are regarded as collectible and the inventory has a fair value less cost of disposal which is equal to the carrying amount. The patent has a fair value less cost of disposal of P900,000. At year-end, the entity determined the value in use of the unit at P4,860,000. Q1) How much is the impairment loss to be recognized at year-end? Q2) How much impairment loss is allocated to Patent? Q3) What is the carrying amount of the Plant and Equipment at year-end after impairment loss had been recognized? Question 6 yet answ Marked out of 3.00 At year-end, Generous Company has a cash generating unit with the following assets and liabilities at carrying amount: Inventory P240,000 Accounts Receivable P360,000 Plant and Equipment P7,200,000 Accumulated Depreciation P3,120,000 Patent P1,020,000 Goodwill P120,000 Accounts Payable P750,000 The accounts receivables are regarded as collectible and the inventory has a fair value less cost of disposal which is equal to the carrying amount. The patent has a fair value less cost of disposal of P900,000. At year-end, the entity determined the value in use of the unit at P4,860,000. Q1) How much is the impairment loss to be recognized at year-end? Q2) How much impairment loss is allocated to Patent? Q3) What is the carrying amount of the Plant and Equipment at year-end after impairment loss had been recognized?

Answer rating: 100% (QA)

Q1 To determine the impairment loss to be recognized at yearend we compare the recoverable amount of ... View the full answer