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Question 6 At year-end, Generous Company has a cash generating unit with the following assets and liabilities at carrying amount: Inventory P240,000 Accounts Receivable P360,000 Marked out of 3.00 Plant and Equipment P7,200,000 Accumulated Depreciation P3,120,000 Patent P1,020,000 Goodwill P120,000 Accounts Payable P750,000 The accounts receivables are regarded as collectible and the inventory has a fair value less cost of disposal which is equal to the carrying amount. The patent has a fair value less cost of disposal of P900,000. At year-end, the entity determined the value in use of the unit at P4,860,000. Q1) How much is the impairment loss to be recognized at year-end? Q2) How much impairment loss is allocated to Patent? Q3) What is the carrying amount of the Plant and Equipment at year-end after impairment loss had been recognized?

Question 6 Marked out of 3.00 At year-end, Generous Company has a cash generating unit with the following assets and liabilities at carrying amount: Inventory P240,000 Accounts Receivable P360,000 Plant and Equipment P7, 200,000 Accumulated Depreciation P3,120,000 Patent P1,020,000 Goodwill P120,000 Accounts Payable P750,000 The accounts receivables are regarded as collectible and the inventory has a fair value less cost of disposal which is equal to the carrying amount. The patent has a fair value less cost of disposal of P900,000. At year-end, the entity determined the value in use of the unit at P4,860,000. Q1) How much is the impairment loss to be recognized at year-end? Q2) How much impairment loss is allocated to Patent? Q3) What is the carrying amount of the Plant and Equipment at year-end after impairment loss had been recognized

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