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On December 31,20X1, ABC Co. determined that Its building with historical cost of 25,000,000 and accumulated depreciation of 19,000,000 Is Impalred. ABC Co. estimated an
On December 31,20X1, ABC Co. determined that Its building with historical cost of 25,000,000 and accumulated depreciation of 19,000,000 Is Impalred. ABC Co. estimated an annual cash flow of 1,000,000 for the next five years. However, the cash flow projection should be extended up to 7 years. The long-term growth rates on the 6th and 7th years are -4% and -8%, respectively. The appropriate discount rate is 10%. The fair value less costs of disposal of the building is P4,000,000. How much is the Impairment loss
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