What is the amount of impairment loss on january

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Problem 1: On January 2, 2014, Beige Company has completed the construction of a building for a total cost of Php 10,000,000. The building is to be depreciated on a straight-line basis over its estimated useful life of 40 years. On January 2, 2019, Beige converted the building into a commercial establishment with only minor renovation costs incurred. In consultation with an appraiser, the building's fair value as of January 2, 2019 was Php 11,970,000. On January 1, 2021, due to sudden change in the economic environment, Beige is evaluating possible impairment and determined that the recoverable value of the building was Php 7,000,000. What is the amount of impairment loss, if any, on January 1, 2021?

Reference no: EM132736146

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