Determine the impairment loss on inventory for violet corp

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Violet Corporation concluded that the electronics division is a cash generating unit. The corporation assessed the value in use of the division to be P8,000,000. The carrying value of the assets are P5,000,000 for the structure, P3,000,000 for the equipment, and P2,000,000 for the inventory. The corporation also concluded that P4,500,000 is the building's fair value less cost of disposal.

Problem 1: Determine the impairment loss on inventory.

Reference no: EM133003495

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