What amount recognized as gain on reversal of impairment

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Problem 1: Palance Company provided the following calculation about an impairment loss recognized on December 31, 2019: CA of Goodwill 6,000,000; CA of Other assets 18,000,000; Impairment loss on Goodwill 6,000,000; Impairment loss on other assets 4,000,000. There has been a favorable change in the estimate of the recoverable amount of the net assets since the impairment loss was recognized. The recoverable amount is now P16,000,000 on December 31, 2020. The carrying amount of the new assets of would have been P14,400,000 on December 31, 2020. Assets are depreciated at 20% of reducing balance. What amount should be recognized as gain on reversal of impairment for 2020?

Reference no: EM132674956

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