On January 1, 2015, GUITEREZ COMPANY acquired a factory equipment at a cost of P150,000. The equipment is being depreciated using the straight-line method over its projected useful life of 10 years. On December 31, 2016, a determination was made that the assets recoverable amount was only P96,000. Assume that this was properly computed and that recognition of the impairment was warranted. On December 31, 2016, the assets recoverable amount was determined to be P111,000 and management believes that the impairment loss previously recognized should be reversed. You have been asked to assist the companys accountant in the application of PAS 36, the standard on impairment of assets.

Questions: 1. How much impairment loss should be recognized on December 31, 2016? 2. What is the assets carrying amount on December 31, 2017? 3. What would have been the assets carrying amount at December 31, 2017, had the impairment not been recognized in 2015? 4. How much impairment recovery should be reported in the 2017 income statement of Rodavia Company?