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Question - Fluffy Company's division one is a cash generating unit. The company has determined the recoverable value of division one to be P440,000.
Moreover, the company has also determined the following for its building:Value in use P240,000
Fair value less cost of disposal 260,000The carrying amounts of division one's assets are as follows:
Inventory P160,000 Building 320,000
Equipment 160,000 Goodwill 10,000
Required -
1. How much impairment loss was allocated to the building?
2. How much impairment loss was allocated to the inventory?20. How much impairment loss was allocated to the equipment?
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