question archive Broadway Company purchased a building on January 1, 2020 for P10,000,000
Broadway Company purchased a building on January 1, 2020 for P10,000,000
Subject:AccountingPrice: Bought3
Broadway Company purchased a building on January 1, 2020 for P10,000,000. The building has been depreciated using the straight-line method with a 25-year useful life and no residual value. On December 31, 2023, Broadway is evaluating the building for possible impairment. The building has a remaining useful life of 15 years and is expected to generate cash inflows of P700,000 per year. The present value of an ordinary annuity of 1 at 8% for 15 periods is 8.56. The fair value of the building on December 31, 2023 is P5,300,000. What amount should be recognized as impairment loss on December 31, 2023?
