Question 4 Not yet answered Marked out of 5.00 In January 20x1, Efficacious Company purchased equipment at a cost of P1,600,000. The equipment has residual value of P320,000, a useful life of 8 years and is depreciated by the straight- line method. In January 20x3, it became apparent that this equipment suffered permanent impairment in value. The equipment has a remaining useful life of 2 years, residual value of P80,000, and is expected to generate undiscounted net cash flows of P280,000 per year. The appropriate discount rate is 8%. The present value of an ordinary annuity of 1 at 8% for 2 periods is 1.78; the present value of 1 at 8% for two periods is .86. The fair value less cost of disposal of the equipment on January 1, 20x3, is P560,000. Q1) How much is the carrying amount of the equipment as of December 31, 20x2? Q2) How much is the value in use of the equipment on January 1, 20x3? Q3) How much is the impairment loss on January 1, 20x3? Q4) How much is the depreciation expense on December 31, 20x3? Q5) How much is the carrying amount of the equipment as of December 31, 20x3?