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What amount of impairment loss should Marcus recognize

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Reference no: EM132945397

Question - Marcus Company operates an oil platform in the sea. Marcus Company has provided the amount of P10,000,000 for the financial costs of the restoration of the seabed, which is the present value of such costs. Marcus Company has received an offer to buy the oil platform for P16,000,000 and the disposal costs would be P2,000,000. The value-in-use of the oil platform is approximately P24,000,000 before the restoration costs. The carrying value of the oil platform is P20,000,000. What amount of impairment loss should Marcus recognize related to the oil platform?

Reference no: EM132945397

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