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?