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What is the entry to record the impairment loss

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Reference no: EM132938338

Burden Company has two cash generating units. On December 31, 2012, the assets of one cash generating unit at carrying amount are:

Inventory 200,000
Accounts receivable 300,000
Plant and equipment 6,000,000
Accumulated depreciation 2,600,000
Patent 850,000
Goodwill 200,000

The accounts receivable are regarded as collectible and the inventory's fair value less cost to sell is equal to the carrying amount. The patent has a fair value less cost to sell of P750,000. On December 31, 2012, the entity determined the value in use of the unit at P4,050,000.

Problem 1: What is the entry to record the impairment loss?

Reference no: EM132938338

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