Valix Finacc vol 1 Problem 19-22

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 19 Problem 19-22

1.  Value in use (1,500,000 x 5.65)                                                                                 8,475,000

2.  Impairment loss                                                                              8,250,000

            Accmulated depreciation                                                                              8,250,000

    Buildings                                                                                                                 25,000,000  

    Accumulated depreciation (22,500,000 / 20 x 6)                                                      6,750,000

    Book value – 1/1/2008                                                                                            18,250,000 

    Fair value – higher than value in use                                                                     10,000,000

    Impairment loss                                                                                                        8,250,000

3.  Depreciation                                                                                  1,000,000

            Accumulated depreciation (10,000,000 / 10)                                      1,000,000