Valix Finacc vol 1 Problem 20-29

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 20 Problem 20-29

1.  Value in use                                                                                                           60,000,000

     Net assets including goodwill at carrying amount                                               75,000,000

     Impairment loss                                                                                                    (15,000,000)

2.  Impairment loss                                                                             15,000,000                                 Goodwill                                                                                                         5,000,000

            Accounts receivable                                                                                       2,000,000

            Inventory                                                                                                         3,000,000

            Accumulated depreciation                                                                            5,000,000

     The remaining impairment loss of P10,000,000, after deducting the loss  

     applicable to goodwill, is allocated to the other noncash assets on a

     prorata basis.