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How much gain on impairment recovery is recognized

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Reference no: EM132950905

Question - On December 31, 2019, B COMPANY subjected to impairment test its trademark.

Data pertinent to the equipment as of December 31, 2019 follow:

Original Cost - P2,400,000

Adjusted accumulated depreciation - 600,000

Original Useful life- 8 years

Selling price - 1,400,000

Estimated cost to make the sale - 200,000

Value in use - 1,100,000

Remaining useful life - 6 years

Method of depreciation - straight-line

On December 31, 2021, the asset is found to have a recoverable amount of P1,400,000.

Required - How much gain on impairment recovery is recognized in 2021?

Reference no: EM132950905

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