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Question - On January 1, 2013, GMA7 Inc. constructed a building classified as owner-occupied property for a total cost of P2,200,000 with useful life of 10 years and residual value of P200,000. It is the company's policy to use the cost method for valuation for property, plant and equipment. On December 31, 2014, the company determined that the carrying amount of the building will be recovered principally through a sale transaction rather than through continuing use. The following amounts are provided by a qualified appraiser: 12/31/2014- Value in Use P1,700,000; Fair value less cost to sell P1,600,000. What is the impairment loss to be recognized by GMA7-Inc. on the building for the year ended December 31, 2014?
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