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How much shall be credited to the inventory account

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Reference no: EM132955471

An entity has determined that its fine China Division is a cash generating unit. The entity calculated the value in use of the division to be P8,000,000. The assets of the CGU at carrying amount are as follows:

Building 5,000,000                Equipment 3,000,000
Inventory 2,000,000              Goodwill 1,000,000

Problem 1: The entity has also determined that the fair value less cost to sell of the building is P4,200,000. In recording the impairment loss, how much shall be credited to the Inventory account?

Reference no: EM132955471

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