What is the carrying amount of equipment for landau company

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Problem 1: Landau Company purchased equipment for P5,600,000 on December 31, 2015. The equipment had an 8-year useful life and residual value of P800,000. The entity questioned the recoverability of the carrying amount of the equipment. On August 31, 2019 the undiscounted expected net future cash inflows related to the continued use and eventual disposal of the equipment total P3,300,000. The fair value less cost of disposal of the equipment on such date is P3,000,000. After any loss on impairment has been recognized, what is the carrying amount of the equipment?

Reference no: EM132674950

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