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An intangible asset costs P300,000 on January 1, 2014. On January 1, 2015, the asset was evaluated to determine if it was impaired. As of
An intangible asset costs P300,000 on January 1, 2014. On January 1, 2015, the asset was
evaluated to determine if it was impaired. As of January 1, 2015, the asset was expected to
generate future cash flows of P25,000 per year (at the end of each year). The appropriate discount
rate is 5%.
a. What total amount should be charged against income in 2012 assuming that as of January 1,
2014, the asset was assumed to have an indefinite useful life and that as of January 1, 2015,
the remaining life was still indefinite?
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