Reference no: EM132675014
Food supplements production is a CGU of Waltz Company. At year end, the entity believed that the assets of the CGU are impaired based on an analysis of economic indicators. The assets and liabilities of the CGU at carrying amount at year-end are:
Cash 12,000,000;
Accounts receivable 18,000,000;
Allowance for doubtful accounts 3,000,000;
Inventory 21,000,000;
Property, plant & eqpt 66,000,000;
Accumulated depn 12,000,000;
Goodwill 9,000,000;
Accounts payable 6,000,000;
Loans payable 3,500,000;
Advances from customers 1,000,000.
The entity determined that the value in use of the CGU is P90,000,000. The accounts receivable are considered collectible except those considered doubtful. In recording the impairment,
Problem 1: What is the amount credited to Inventory?
Problem 2: What amount is credited to Accumulated depreciation?
Problem 3: What is the carrying amount of the PPE after the impairment?