Question
8. On January 1, 2018, Gilgamesh Company purchased equipment with cost of P11,000,000, useful life of 10 years and no residual value. The entity used
8.
On January 1, 2018, Gilgamesh Company purchased equipment with cost of P11,000,000, useful
life of 10 years and no residual value. The entity used straight line depreciation.
On December 31, 2018 and December 31, 2019, the entity determined that impairment indicators
are present. There is no change in the useful life or residual value.
12/31/2018
12/31/2019
Fair value less cost of disposal
8,100,000
8,400,000
Value in use
8,550,000
8,200,000
a.
What is the impairment loss for 2018?
b.
What is the gain on reversal of impairment for 2019?
c.
What is the depreciation for 2020?
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College Accounting Chapters 1-24
Authors: Tracie L Nobles, Cathy Scott
11th Edition
1111528306, 978-1111528300
