LDS Company acquired an Equipment costing P1,000,000 on January 1, 2020. The useful life for similar items is estimated at 5 years. The residual value is 10%. However, in 2022, it the residual value was changed to 5%. At December 31, 2022, the fair value less cost to sell and replacement cost amounted to P300,000 and P800,000, respectively.

1. What is the carrying amount of the equipment as at December 31, 2020?

1,000,00

820,000

810,000

800,000

2. What is the carrying value of equipment as at December 31, 2022?

413,333.33

423,666.67

437,333.33

443,333.33

3. How much is the recoverable amount?

330,666.67

354,666.67

341,333.33

300,000

4. How much is the impairment loss to be recognized in surplus or deficit in 2022?

93,466.67

87,466.66

82,666.67

88,666.67

5. How much is the depreciation expense to be recognized in surplus or deficit in 2023?

150,000

152,333.33

125,000

177,333.33

6. What is the carrying amount of the equipment at the end of its useful life?

152,333.33

0

100,000

50,000