The questions are all about the impairment of asset in intermediate accounting subject. Kindly attached the solutions of your answers. Thank you.

Items 1 and 2 are based on the following : On July 1, 2018, Hutton Company purchased computer equipment at a cost of 360,000. This equipment was estimated to have a six-year life with no residual value and was depreciated by the straight-line method. On December 31, 2020, the company determined that this equipment could no longer process data efficiently, that its value had been permanently impaired, and that P70,000 could be recovered over the remaining useful life of the equipment.

1. What is the impairment loss recognized in the accounts on December 31, 2020?

2. What is the asset's carrying amount at December 31, 2021?

3.Gielgud Company determined that due to obsolescence, equipment with original cost of 1,800,000 and accumulated depreciation at December 31, 2020 of 840,000 had suffered impairment and as a result should have a carrying value of only 600,000 at that date. In addition, the remaining useful life of the equipment was reduced from 8 to 3 years. In its December 31, 2021 statement of financial position, what amount should Gielgud report as accumulated depreciation?

Items 4 to 6 are based on the following : Gossett Company acquired a machine for P6,400,000 on August 31, 2016. The machine has a 5-year useful life, a P 1,000,000 residual value, and was depreciated using the straight line method. On May 31, 2019, a test for recoverability revealed that the expected net future undiscounted cash inflows related to the continued use and eventual disposal of the machine amount to P3,000,000. The fair value less cost of disposal of the machine May 31, 2019 is P2,700,000 with no residual value.

4. What is the carrying amount of the machine on May 31, 2019? (prior to recognition of impairment, if any)

5. What is the impairment loss recognized on May 31, 2019?

6. What is the carrying amount of the machine on December 31, 2019?

7.On January 1, 2015, Nicholson Company acquired equipment for P2,000,000 with an estimated 10-year useful life with 10% residual value and used the straight line method of depreciation. During 2019, after the 2018 financial statements had been issued, the entity determined that, due to obsolescence, this equipment has a remaining useful life of only four more years and residual value would be reduced to 40% of the original residual value. On December 31, 2019, what is the carrying amount of the asset?

8.On January 1, 2019, Haing Ngor Company owned a machine having a carrying amount of P4,800,000. The machine was purchased four years earlier for P8,000,000. The entity used straight line depreciation. During December 2019, the entity determined that the machine suffered impairment of the operational value and will not be economically useful in the production process after December 31, 2019. The entity sold the machine for P1,300,000 on January 5, 2020.In the income statement for the year ended December 31, 2019, what amount should be recognized as impairment loss?

Items 9 and 10 are based on the following: On January 1, 2015, Ameche Company purchased a machine for P4,000,000 and established an annual straight line depreciation rate of 10%, with no residual value. During 2019 the entity determined that the machine will not be economically useful in the production process after December 31, 2019. The entity estimated that the machine had no residual value on December 31, 2019, and would be disposed of in early 2020 at a cost of P100,000.

9. In the income statement for the year ended December 31, 2019, what is the depreciation expense?

10. What is the impairment loss in 2019?

11.Caine Company a clothing manufacturer, purchased a sewing machine for P4,000,000 on July 1, 2016. The machine had a 10-year useful life, A P200,000 residual value, and was depreciated using the straight line method. On January 1, 2019, a test for impairment indicated that the undiscounted cash flows from the sewing machine are less that carrying amount. The fair value less cost of disposal of the machine on January 1, 2019 is P1,200,000. What amount of loss on impairment should be recognized?

12.Connery Company acquired equipment on January 1, 2019 for P10,000,000. The equipment had a 10-year useful life and no residual value. On December 31, 2020, the following information was obtained: Expected undiscounted cash flows 7,200,000; Fair value in-use valuation premise 7,400,000; Fair value with in-exchange valuation premise 7,000,000. What amount should be recognized as impairment loss for 2020?

13.Kline Company has an equipment with carrying amount of P3,200,000 on December 31, 2019 after recording depreciation for 2019. The following information is available on December 31, 2019 relative to the equipment: Fair value of similar equipment in an active market 2,800,000 ; Present value of future cash flows 2,600,000 ; Estimated undiscounted future cash flows 2,700,000. At what amount should the equipment be reported on December 31, 2019?