question archive Exercise 1 Genuine Company determined that due to obsolescence an equipment with an original cost of P4,500,000 and accumulated depreciation on January 1, 2020 of P2,100,000 had suffered a permanent impairment and as a result should have a recoverable amount of only P1,500,000 as of the beginning of the year
Exercise 1 Genuine Company determined that due to obsolescence an equipment with an original cost of P4,500,000 and accumulated depreciation on January 1, 2020 of P2,100,000 had suffered a permanent impairment and as a result should have a recoverable amount of only P1,500,000 as of the beginning of the year
Subject:AccountingPrice:2.84 Bought6
Exercise 1
Genuine Company determined that due to obsolescence an equipment with an original cost of P4,500,000 and accumulated depreciation on January 1, 2020 of P2,100,000 had suffered a permanent impairment and as a result should have a recoverable amount of only P1,500,000 as of the beginning of the year.
In addition, the remaining useful life of the equipment was reduced from 8 to 3 years.
Required)
1)Prepare journal entry to record the impairment on January 1, 2020.
2)Prepare journal entry to record the depreciation for 2020.
3)Determine the carrying amount of the equipment on December 31, 2020.
Option 1
Low Cost Option
Download this past answer in few clicks
2.84 USD
PURCHASE SOLUTION
Option 2
Custom new solution created by our subject matter experts
GET A QUOTE
rated 5 stars
Purchased 6 times
