Find the impairment loss, On the date, company purchased a

Find the impairment loss

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Reference no: EM132812594

Question - XY Co. has hired you as an accountant on 1st January, 2013. On the date, company purchased a machine for Rs. 1,500,000 with an estimated useful life of 30 years and residual value is nil. After three years, this machine has been revalued with fair value of Rs. 1,000,000 and cost to sell is (see table below) Value in use is uncertain and not determinable (assume it is zero). The remaining useful life is (See table below). This machine has already balance of revaluation surplus of Rs. (see table below). XY Co. has some operating expenses.

Required -

a) Find the impairment loss?

b) What will be the accounting treatment of impairment loss?

c) Find the depreciation on 31st December, 2015, 2016, 2017) (Straight line method).

Reference no: EM132812594

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