ummer Inc has machine with a carrying value of 450,000 on December 31, 2021. The following information was available on December 31, 2021: ·       Expected net cash flows (undiscounted)- P420,000 ·       Expected net cash flows discounted at 7%- P400,000 ·       Fair value, using the assets with other assets- P415,000 ·       Fair value, assuming the assets are sold stand-alone- P428,000 What is the impairment loss that SUmmer Inc must report in its 2021 income statement for this m

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Summer Inc has machine with a carrying value of 450,000 on December 31, 2021. The following information was available on December 31, 2021:

·       Expected net cash flows (undiscounted)- P420,000

·       Expected net cash flows discounted at 7%- P400,000

·       Fair value, using the assets with other assets- P415,000

·       Fair value, assuming the assets are sold stand-alone- P428,000

What is the impairment loss that SUmmer Inc must report in its 2021 income statement for this machine?

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