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How much should be recognized as impairment loss

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Reference no: EM132984980

Yellow Company is testing an asset for impairment. The carrying amount of the asset is P85,000. The following data has been obtained by Yellow in relation to the asset.

  • Future cash flows expected to be derived from the asset, P100,000
  • Estimated fair value of the asset, P80,000
  • Present value of future cash flows expected to be derived from the asset, P60,000
  • Costs of disposal for the asset, P2,000

PROBLEM 1: How much should be recognized as impairment loss?

Reference no: EM132984980

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