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What is the impairment loss on inventory

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Reference no: EM132839611

Impairment of assets

An entity determined that the electronic division is a cash generating unit. The entity calculated the value in use of the division at P8,000,000. The carrying amount of the assets are building P5,000,000, equipment P3,000,000 and inventory P2,000,000. The entity also determined that the fair value less cost of disposal of the building is P4,500,000

Problem 1: What is the impairment loss on building?

a. 1,000,000

b. 500,000

c. 750,000

d. 0

Problem 2: What is the impairment loss on equipment?

a. 600,000

b. 900,000

c. 450,000

d. 0

Problem 3: What is the impairment loss on inventory?

a. 400,000

b. 600,000

c. 300,000

d. 0

Reference no: EM132839611

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