1.

Pagoda Company has determined that its furniture division is a cash generating unit. The entity calculated the value in use of the division to be P10 million. The carrying amounts of the assets are as follows: Goodwill 1,000,000 Building 8,000,000 Equipment 4,000,000 InventoryF (at LCNRV) 4,000,000 Pagoda Company.r has also determined that the building's fair value less cost to sell is P5.5 million. Avalanche Company acquired a machine costing P24 million was acquired on December 31, 20x5. Its accumulated depreciation on December 31, 20):? is P015 million. On that date, it is tested for possible impairment. It is found to have a fair value less cost to sell of P1 .1 million and value in use of P1 .2 million. It is further determined that the remaining useful life of the machine is six years. The entity uses straight-line method of depreciation. On December 31, 20x9, two years after recording the initial impairment, the machine is revalued and is found to have a recoverable amount of P125 million